Key business statistics
Business failure is an accepted consequence of entrepreneurs being active. It is also normal for failures to occur during a recession, when the economy contracts.
But what of an abnormal event such as the COVID-19 crisis? What will the future look like? How can viable businesses defeat the effects of the pandemic?
These are far from normal times. Commentators predict a frightening level of business failure because of the pandemic. If that does occur, there will be many job losses as well as a vast write-down of investment capital.
Most New Zealanders have engaged with the daily dose of statistics that the government has so freely shared with us. We’ve absorbed them, listened to the official narrative and been able to reach our own conclusions from the information provided. The government’s objective of ridding New Zealand of the virus is clear and they have allowed us to see what they see, which has brought almost everyone along with them.
Tracking companies that enter a formal state of insolvency is essential if we are to adopt a similar objective. How many companies have failed, where they did business and what they did is powerful information. Survivors want to see what is happening in their industry, investors need to gauge the value of their inputs and service providers want to assess their risk.
A society cannot stop business failure. New successes are the lifeblood of growth, and failure is an inherent element of striving to achieve. But we can work to stop the liquidation of companies that are victims of this crisis and knowing the landscape is essential if that is to be achieved.
Business success is based in the exchange of value at a level that achieves viability. It is hard enough to succeed in normal circumstances but when an all-encompassing event like COVID-19 depresses all activity, knowing its effect is vital if it is to be beaten.
BWA wants your business to make it through these difficult times and to flourish again. To help with that, be as informed as possible by signing up to our newsletter and receiving weekly updates on important statistical metrics and valuable business insights in respect of them.
Stay positive, stay safe, and don’t hesitate to reach out to us if you need any more information about any of our services.”
BWA Insolvency Limited
The place you go when Voluntary Administration will help rebuild your business future
- The case for Voluntary Administration
- The New Economic Climate
- How VA Helps Companies Get Back On Their Feet
- Seeing the light in a failed business rescue plan
- The year that was
- Business debt hibernation is here
- Week one of a new world
- Statistics don’t tell the story yet
- Key business statistics
- Business rescue using voluntary administration
- The VA Model
- The Case for Voluntary Administration
- Where’s the flywheel?
- Don’t cut cost – cut waste: the beneficial impact of cutting waste
- What’s in store for companies living on the edge?