Failure rate in business services sector remains below average

UK— The rate of insolvencies in the business services sector held below average in December, with the number of firms failing down 4% from the same period in 2008.

The sector, which includes market research and polling agencies, data services companies and ad agencies, saw 0.09% of firms close their doors in December, well below the rates reported in some industries such as food manufacturing, plastics and rubber, and hiring and leasing, all of which saw a failure rate more than three times as high.

The figure of 0.09% was unchanged from December 2008, while the total number of firms failing was down 4% to 491.

The sector’s ‘financial strength score’, which predicts the likelihood of businesses making it through the next 12 months based on data such as payment histories and financial accounts and provides a score on a scale of 1-100, was up to 81.82 for December 2009 compared to 79.52 the previous December.

It was also marginally above the average financial strength score for all UK businesses, which was 81.37 over the course of 2009, and well above the score for companies in sectors such as plastics and rubber, food retail and postal and telecommunications.

The average figure for all sectors was up from 79.46 in 2008, which Experian said painted a slightly healthier picture of the UK business landscape.

Rolf Hickmann, managing director of Experian-owned marketing analytics firm pH, said: “In 2009 businesses in Great Britain managed to climb back to a better place financially… Many more businesses are taking steps to protect themselves from the risks of not getting paid, the impact on them if a key supplier or customer goes bust and indeed the risk of insolvency within their own businesses.”

We hope you enjoyed this article.
Research Live is published by MRS.

The Market Research Society (MRS) exists to promote and protect the research sector, showcasing how research delivers impact for businesses and government.

Members of MRS enjoy many benefits including tailoured policy guidance, discounts on training and conferences, and access to member-only content.

For example, there's an archive of winning case studies from over a decade of MRS Awards.

Find out more about the benefits of joining MRS here.

0 Comments


Display name

Email

Join the discussion

Newsletter
Stay connected with the latest insights and trends...
Sign Up
Latest From MRS

Our latest training courses

Our new 2025 training programme is now launched as part of the development offered within the MRS Global Insight Academy

See all training

Specialist conferences

Our one-day conferences cover topics including CX and UX, Semiotics, B2B, Finance, AI and Leaders' Forums.

See all conferences

MRS reports on AI

MRS has published a three-part series on how generative AI is impacting the research sector, including synthetic respondents and challenges to adoption.

See the reports

Progress faster...
with MRS 
membership

Mentoring

CPD/recognition

Webinars

Codeline

Discounts