Part 1

As we all know, we’ve been hit with the hardest recession in our nation’s history which was a result of huge credit debts resulting in the infamous ‘Credit Crunch’. The recession has affected many people’s lives in respect to personal & business finance in particular for better or worse, we are looking to see how it’s generally affecting business in 2010 (Part 1) and what the future for businesses in the UK is (Part 2).

With the recession, naturally a lot of businesses started to fail miserably which obviously increased the number of companies that ceased to exist. The leap from businesses that went bust in quarter 2 of the year from 2008 were 6,409 which increased to 8,874 in 2009 but the figure in 2010 decreased by 1,699 to 7,175 which suggests that industries have picked up in the last year.

Recent information also shows that since 2009 businesses have changed the way they conducted themselves and have realised that keeping close control on cash and costs is vital to survival, hence the decrease in businesses going bust. This does not mean whatsoever those businesses are out of the woods, as finance is only 1 factor of its success and the industries market conditions are also crucial. With businesses willing to change and adapt in the current climate they have been able to enter into other markets meaning that they have more substance to their business rather than being a ‘sitting duck’.

It has not been doom and gloom for all companies and markets as there have been a lot of companies that have taken advantage of the market condition in the early stages of the recession and who are now making more profits than they could have imagined due to the economic state.

All businesses that have survived the recession have learnt valuable and positive lessons about themselves, like learning their own capabilities. Caution is a factor that all businesses will need to take with them into the future as the economy is still in its fragile state, along with the ability to adapt and change with market & economic conditions being crucial to success.

With business finance being arguably difficult to attain and as some groups believe ‘impossible’ over recent times, which other reports suggest otherwise and have a more optimistic views based on the high level of enquires to the high level of completions throughout the process of the year.

Stay tuned for part 2, ‘What future do businesses have?’

Source by Toby Breeden