.jpg)
It found that, between December 2014 and June 2015, 170,359 businesses were dissolved, compared to 193,699 in the previous six months.
It was the first time that the number of company dissolutions was lower than in the previous six months since the index began in 2012.
Dena Brumpton, Head of Wealth Management, UK at Barclays, said: “The dip in the number of companies that are dissolving is testament to the growth in business confidence we have seen in recent years, allowing UK businesses not just to start up, but to succeed.
“These results are particularly encouraging as the business landscape in the UK is changing, with a relatively small number of small and medium sized enterprises delivering a significant impact on economic growth, employment and wealth creation.”
E-lender Everline believes that the way in which the alternative finance industry has embraced technology has played a significant role in the growing success of SMEs.
Everline has lent over £90m and made over 8,000 loans since its inception in 2012.
Russell Gould, COO, said: “Everline was born out of a frustration with the outdated and inflexible approach to underwriting that traditional lenders apply to small business loans.
“Our philosophy from the start was to use technology and access to real-time data to open up lending to more small businesses.”
Lender Just Cash Flow PLC says the alternative finance sector has more to do than just providing funding option for SMEs – it believes the industry needs to start addressing gaps in education.
John Davies, Director at Just Cash Flow PLC, said it is now too easy to start a new business without having the necessary knowledge.
John told Bridging & Commercial: “While there is information available on all aspects of running a business there is no obligation to read it or comply with it; there are no exams to pass or fail.
“This is where the gap really is - many people don’t understand the enormity of what they are about to undertake by starting their own business.”
Leave a comment