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Friday, 10 September 2010

Small Businesses Facing Insolvency

Insolvency R3 10 percent of small businesses could be pushed into insolvency if they lose their public sector contracts, according to research by R3, the insolvency trade body.

A third of businesses said they were "over reliant on public sector contracts". This 'worst case' scenario would mean 148,000 businesses could be placed into corporate insolvency.

As per my previous blog, I suspect a fair few of these will be in the North and the Midlands.

1 comment :

  1. It also may be that the R3 research is a little simplistic?

    I believe there will also be a huge issue down the supply chain. How many businesses are to some extent dependant upon Government spending, but a few steps removed? Many may not even realise it.

    Whilst the cuts are no doubt (in many areas at least) very necessary, I think it is almost impossible to judge the consequences. Life could get very difficult for many smaller businesses.


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