Business numbers grew in last parliament but one in five struggled
Of all businesses in operation at the last election in 2015, more than one in five are no longer trading, according to new research.
Although figures from Inform Direct – complied using data from Companies House and the Office for National Statistics – reveal 11% overall growth in the last two years, just 79% of firms in existence in June 2015 are still in business.
More than 417,000 businesses were set up in that period, as the total number of registered firms rose from 3,622,024 at the start of the last parliament to 4,039,333 when it was formerly dissolved a matter of weeks ago.
When considering growth by political constituencies, an average of 758 net additional companies were found in Labour constituencies, followed by an average of 609 and 317 in Conservative and Liberal Democrat regions respectively.
The figures mark a reversal from the previous parliament where the best growth was noted in Conservative constituencies – it is suggested that this reflects differences between rural and urban areas, with the latter deemed more likely to see business growth.
Holborn and St Pancras, in London, saw nearly 19,000 new companies formed in the last two years, making it the region with the highest rate of growth.
Ten of 650 constituencies saw business numbers decrease during the last parliament – Islington South and Finsbury saw the number of firms decrease by more than 1,100, meaning that just 63% of firms active in 2015 were still in business in May this year.
For businesses facing insolvency and an uncertain future, seeking professional corporate advice is recommended as it can reveal potential solutions and enable a firm to continue trading.
Restructuring, corporate simplification and refinancing can all provide a new approach to doing business that protects the longevity of a company.
By Phil Smith