As the Government announced a rise in the number of small businesses, bankruptcy levels have also hit a 45-year high. According to the Forum for Private Businesses, the majority of these are from small businesses, categorised as those with fewer than 50 staff.
Around 93% of the UK's newest businesses are defined as small, making up 47% of the country's employment and 37% of its' total turnover. The forum are blaming government schemes for encouraging people to set themselves up in self-employment for the high levels of bankruptcy.
Our view
Bankruptcy laws have changed meaning that people can be clear of their bankruptcy after just 12 months. It is hoped that this will encourage more budding entrepreneurs to go for it.
Alas, we also see it as a chance for some to abuse the position.