Young companies at risk

By Amber Plum
Staff Writer, Smart Company

Thursday, 1st October 2009

Almost one in five businesses under five years old are at "high risk" of experiencing financial stress before June next year, a new report has found.

The report by Dun & Bradstreet found 20,000 young businesses, or 17%, faced a high risk of insolvency and payment defaults, compared to just 3% of more established companies.

"There could be many reasons for this, but really, [the first five years] are a time when you're going to test the longevity of your business," says D&B chief executive officer Christine Christian.

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