Small Business Success Rates Improve

The chances of new small business owners making a success of their venture seem to be on the increase according to a new report.

For the first time in two years business failures are in decline according to company information specialist Experian.

Over the last 3 months the number of business failures has reduced by 4.1% over the same period in 2005. The engineering sector saw the biggest decline - 32.5% less engineering companies are being forced to close, although this may be because many have closed over the past years and there are less to be closed. But it is good news nevertheless.

Textile and clothing failures declined by a huge 34.6%, probably for the same reasons we highlight in the engineering sector, and post and telecommunications fell by 27.9%, probably because less village post offices are closing these days.

But of course there is an offset in other sectors where business failures are on the increase. Business closures in the hire and leasing sector increased by 95.5% and food retailing and building materials saw their business failures increase by 88.9% and 157%

Of all the sectors being monitored, 10 saw a decrease in business failures whilst 23 saw an increase in business failures.

We suggest you have a look at your business plan now - more companies survive long term when they have a business plan in place. Let’s hope your business does not end up being on e of the failures.