Small businesses are the most affected by bankruptcy proceedings. - Alloct.com

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Monday, November 4, 2019

Small businesses are the most affected by bankruptcy proceedings.

The third quarter lands with bad news for small businesses. The number of companies in bankruptcy. Or suspension of payments increases in our country, increasing by 14% the number of companies that entered into the competition, up to 1,384 entities, concerning the same period of 2018. 


Of the total, 21.7% of them came from small businesses, the sector with the most companies in the competition (209).

Small businesses are the most affected by bankruptcy proceedings.
Small businesses are the most affected by bankruptcy proceedings.


As stated by the National Statistics Institute (INE), of the 1,384 companies that went bankrupt and suspended payments, 56 were anonymous, with a year-on-year drop of 34.1%, while 808 were limited, 22.1 % more than in the same period of the previous year. 


Also, voluntary competitions increased by 10.6%, to add up to 1,303, while the necessary operations fell by 10%, with a total of 81 processes.

56% have less than six employees.

The INE notes that 56% of the companies have less than six employees, and within them, 28.2% have no workers in their care. Also, 23.6% of entities under four years of age operated in the third quarter in the commerce sector, while about 51%, between 20 or more years, were engaged in industry and energy and commerce. On the other hand, 34% of the bankrupt entities were concentrated in the lowest tranche of business volume (up to 250,000 euros) and were mainly limited liability companies.

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