December research shows that almost half of all South East UK based companies face a high risk of insolvency.
Despite this, the region is still known to be one of ‘’entrepreneurialism and innovation.’’
R3, insolvency and restructuring body found 44.9 per cent of firms at elevated risk of insolvency, higher than the national figure of 44.1 per cent.
Interestingly, when looking at the professional services sector in the South East alone, the figure reached a very high 49.3 per cent. Technology and IT reached 47.3 per cent, construction with 47.2 per cent, retail 40.6 per cent and tourism, transport and haulage all at 39.9 per cent – these all being the highest sector figures.
The lower figures were for agriculture with 34.2 per cent, restaurants with 35.1 per cent and hotels at 35.2 per cent – could this be due to the fact that already many businesses in these sectors have fallen into insolvency?
Mike Pavitt, chairman of the southern committee of R3 and partner with Southampton law firm Paris Smith explained that with these results, perhaps it makes sense that the region is still characterised for entrepreneurialism and innovation as many young firms and start-ups have a high risk of insolvency. Remember, the first 3 years are critical for start-ups – many do not survive.