Businesses across the UK have faced extremely challenging times in recent years. Real Business Rescue has looked into the number of businesses that have had to dissolve no longer than one year since being incorporated.
Using Companies House data, filters were applied to only show companies which were incorporated in the year 2022, but have since been marked as dissolved.
More than 6,900 companies were incorporated and dissolved in 2022, with that 1,500 London companies were incorporated and dissolved in 2022.
“Retail sale via mail order houses or via internet” was the most common industry for dissolved companies and businesses who were incorporated in 2022 latest on average, just 164 days.
Shaun Barton, National Online Business Operations Director at Real Business Rescue, said, “Our research has highlighted the intense strain put on new businesses over the last year, as almost 7,000 businesses in their first year of trading were dissolved in 2022, with the average of these businesses lasting just 164 days.
“While there are a whole host of reasons to strike off a company, for these new businesses, it is likely that they never got off the ground at all.
“Many small businesses saw demand for their products and services fall as the economy struggled for growth and consumers reined in their spending.
“Rising inflation and soaring interest rates affected all businesses new and old and, despite introducing government support programmes, the sharp increase in energy bills has also contributed to the struggles facing businesses over the past few months.
“Now with the government scaling back support and protection for businesses in relation to their energy bills from April 2023, we expect to see corporate insolvency and liquidation rates rise considerably in the coming months.
“New businesses formed this year are doing so in a particularly volatile environment. With the limited support, this could put even more pressure on start-ups getting off the ground than what we saw last year.”