Thursday 16 Aug 2012 8:47 am
Businesses were hit badly by the financial crash (Picture: Reuters)It is often talked about in hushed tones, so it is sometimes hard to believe that the worst financial meltdown for almost 80 years took place such a short time ago.
When Britain went into recession at the end of 2008, thousands of businesses went under. Figures published today by Duedil , a London start-up which is the country’s largest source of free private company information, reveal just how many.
It examined the closures and formations of five million companies across a period of eleven years. In 2009, with the financial crisis still gripping Britain, almost 500,000 businesses went bust, according to the statistics, on top of the 312,000 that closed in 2008.
Duedil said the worst hit area was the North of England, while manufacturing and heavy industry suffered most, contracting by more than four per cent in 2009 after eight consecutive years of growth.
And yet businesses have fought back. All areas of Britain experienced growth in the number of companies last year, totalling more than 180,000. To put that in perspective, 2009 saw a net loss of 127,000 companies.
But the road to recovery is long and the current financial state in not as healthy as it could be.
With Britain currently in a double-dip recession, Damian Kimmelman, chief executive of Duedil, said lessons must be heeded.
‘Regardless of the economy’s specific route to recovery, it is obvious that there is a pressing need for clearer understanding of the country’s business landscape,’ he said.
‘It is time to move beyond our simplistic view of the mechanics of the economy and to start harnessing the vast amounts of available information to better understand the forces at play and their effects on the market.’
Go to www.duedil.com for more information