“INsolvencies soar” TheAge reports this morning… same story, my headline reads “More budding entrepreneurs are willing to give it a crack!”… which do you prefer?
Poor strategic management, insufficient cash flow and trading losses are among the most common reasons why companies fail, and in most cases, unsecured creditors receive less than 10 in the dollar back, statistics from the corporate regulator indicate.
The figures suggest that the vast majority of failed companies have fewer than 200 employees, almost 65% of them have less than five staff members, and that more failures occur in the construction, business services and retail industries.
to read on…
go to ASIC
What this article has not included is how many companies have registered over the same period…
in 2008 alone, 9730 registered in January with it registrations “soaring” to 13789 in May.
go to ASIC
So yes, there has been a marked increase in insolvencies, which in turn relates to a marked increase in registrations. It could easily be translated that more and more people are giving themselves a chance to make it in business, with a percentage not being successful (this time!)
No reason to stop doing it though is there?…