In practice, this means that companies in construction, retail and real estate are 2.6 times more likely to collapse in the present market than those in the other sectors covered by the data, including such support industries such as those providing accounting, marketing and project management services.
So given the difficult state of the economy how come more businesses are not going into liquidation?
- Lack of pressure from HMRC and Banks
- New companies not taking market share from existing providers
- "Zombie companies"with historic debts kept going due to point 1
- A period of stagnation and inaction as a result of uncertainty in global economy.