Business Failures Rise 25%

13 May

From Dun and Bradstreet:

Business failures jumped nearly 25 percent in 2010 as cash flow pressures made their presence felt even as the Australian economy continued to be one of the better performers in the developed world.

This is just one finding from new research by Dun & Bradstreet examining new and failed business trends over the last three years, which includes the Global Financial Crisis (GFC) and Australia’s return to post-crisis growth.

The research found that while business failures climbed marginally in 2009, during the peak of the GFC, there was a dramatic upturn in 2010. The rate at which businesses failed in 2009 climbed a marginal 4 percent to just over 8,000 however spiked dramatically in 2010 by more than 23 percent to over 10,000 firms.

As a small business owner myself, Tony Abbott’s Budget Reply speech last night included a number of lines that really resonated with me. And doubtless with many tens of thousands of other small business owners throughout the nation (emphasis added):

“… the Coalition is always looking for ways to help small business suffering in a patchwork economy because that’s where jobs are created and families get ahead.”

“Mr Speaker, Labor can’t help treating small business with suspicion as potential tax cheats and havens for non-union workers. The Coalition thinks that small business is more likely to treat workers like family and is the engine of higher employment and greater prosperity.”

When it comes to government economic policy, we are the “forgotten Australians”.

A family to our workers.

And the now-sputtering engine of Australia’s real economy.

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