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SME insolvencies continue to fall

Simon Quicke

The level of insolvencies among SME firms in the IT sector continue to drop from the grip of recession last year but larger firms continue to run into difficulty.

According to figures for July from Experian the SME community across all business sectors continues to improve but those outfits with more than 500 staff continue to remain fragile.

Specifically in the IT sector there were 55 failures last month compared to 75 a year before, with 0.05% of the business population biting the dust, plus according to Experian's measures the financial strength continued to return to the tech market.

Life remained tough for construction and health specialists with those sectors seeing failures in the hundreds last month.

Geographically Scotland was the safest place to operate with the lowest rate of insolvencies followed by the South East. Yorkshire was the worst area in terms of businesses failing.

Max Firth, managing principal of pH, an Experian company, said that the SME population was doing better than larger firms compared to summer last year.

"However, increasing failures at the top end of the market demonstrates clearly that there is still a great deal of uncertainty," he said.


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