Part 1

As we all know, we have been hit by the harshest recession in our nation’s history, which was the result of huge credit debts resulting in the infamous ‘Credit Crash’. The recession has affected the lives of many people with regard to personal and business finances in particular, for better or worse, we are looking to see how it will affect business in general in 2010 (Part 1) and what the future holds for business. in the UK (Part 2). ).

With the recession, naturally, many companies began to fail miserably, which obviously increased the number of companies that ceased to exist. The jump in companies that failed in the second quarter of the year from 2008 was 6,409, which increased to 8,874 in 2009, but the number in 2010 decreased by 1,699 to 7,175, suggesting that industries have rebounded in the last year.

Recent information also shows that, since 2009, companies have changed the way they conduct themselves and have realized that keeping tight control over cash and costs is vital to survival, hence the decline in companies going bankrupt. . This does not mean that these companies are out of the woods, as finances are only one factor in their success and industry market conditions are also crucial. With companies willing to change and adapt to the current climate, they have been able to enter other markets, meaning they have more substance to their business rather than being a ‘sitting duck’.

It has not been bearish for all companies and markets as there have been many companies that have taken advantage of the market condition in the early stages of the recession and are now making more profit than they could have imagined due to the economic state.

All companies that have survived the recession have learned valuable and positive lessons about themselves, such as learning about their own capabilities. Caution is a factor that all businesses will need to consider going forward as the economy is still in a fragile state, along with the ability to adapt and change with market and economic conditions that are crucial to success. .

Given that business funding is arguably difficult to come by and some groups believe ‘impossible’ as of late, other reports suggest otherwise and take a more optimistic view based on the high level of inquiries at the high level of completions over time. of the process of the year. .

Stay tuned for part 2, ‘What future do companies have?’