A survey of insolvency practitioners (IPs) by ComRes has found that the insolvency profession helped to save 2 in 5 businesses in 2013-14.
Of the 448 IPs who were asked (all members of R3, the insolvency trade body), it was found that:
- 41% of formal insolvencies where an IP was appointed (6,700 businesses) continued trading in some way, resulting in 230,000 jobs being saved
- 10,400 businesses continued operating after working with the insolvency profession, and these businesses employed approximately 540,000 people after receiving support
- the profession provided advice to about 135,000 people about their personal finances
The research also found that in 2014, the insolvency profession was set to help individuals repay £5bn in debts to creditors over the next 5 years.
Phillip Sykes, President of R3, said that rather than the work of IPs being all about personal finance failure, it is also about business recovery and renewal, as well as ensuring a balance between creditors and debtors.
“Insolvency practitioners witness first-hand the human cost of business failure and will make every effort to protect jobs where possible. The sooner insolvency practitioners’ advice is sought, the more chance there is of business and job rescue.”
See ComRes for the survey’s data tables.