According to new research by BDO Stoy Hayward , it is expecting that 18,052 businesses will fold next year. This is 749 more than the figures posted in 2005. But the forecasted economic growth for the next two years will mean that the number of corporate failures will drop to 17,528 in 2007.
A total number of 17,303 firms have folded this year with shop owners taking the biggest hit. About 1245 retailers have folded business, which is up from 960 in 2004. This increase is not surprising because of the lowered consumer confidence stores had to contend with this year.
But with houses price and interest rate stability in the 1Q of 2006 set to boost consumer confidence, the report predicted better news for the sector.
Company formation and business solutions experts are hoping that the expected drop in corporate failures will come true in order to entice more people to start their businesses.
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