Business figures in Rugby constituency labelled ‘disturbing’ after 2,000 companies dissolve

Jim Griffin, Rugby branch chairman of Coventry and Warwickshire Chamber of Commerce, had mixed views on the figures
Jim Griffin, Rugby branch chairman of Coventry and Warwickshire Chamber of Commerce, had mixed views on the figures

More than 2,000 businesses have dissolved in the Rugby constituency since the coalition government took over.

The latest figures show that, while there was a net increase of 729 businesses set up in the borough under parliament in the last four years, 2,177 businesses failed in total.

Those businesses that succeed come prepared with a solid well thought through business plan

Aftab Gaffar, managing director of Rugby First

The statistics, compiled by company records management firm Inform Direct, also show that 50 per cent of companies active at the start of the coalition government have failed.

Jim Griffin, Rugby branch chairman of Coventry and Warwickshire Chamber of Commerce, and chief executive officer of The Autins Group, said it was ‘disturbing’ to see 2,000 businesses had dissolved.

“Obviously it’s great to see that the number of companies trading in and around the town has increased so significantly,” he said.

“At the same time, it’s also quite disturbing to see that more than 2,000 companies were dissolved during that same period.

“However, it’s important to remember that statistics don’t tell the whole story – we don’t know why they shut down or if they were reformed for example.

“Automotive Insulations has been located in Rugby since 1966 and we have always found it a great place to do business, with good transport links and a supportive commercial community.”

Aftab Gaffar, managing director of town centre management company Rugby First, said: “Despite the difficult economic climate over the past few years Rugby town centre has and continues to attract new businesses which is great news for the area.

“The 50 per cent failure rate for new businesses (within the first few years) is a national trend and generally a result of poor planning, insufficient capital and lack of market knowledge.

“Those businesses that succeed come prepared with a solid well thought through business plan, good management and relevant expertise in areas such as finance, purchasing, selling, production, hiring and managing employees.

“Crucially though they also understand who their customers and competitors are.”

Figures for the Rugby constituency since the coalition government:

Companies formed during parliament = 2,906

Companies dissolved during parliament = 2,177

Net increase in companies in parliament = 729

Total number of companies at the start of parliament = 4,339

Total companies at end of parliament = 5,068

Companies active at the start of parliament that have not been dissolved = 2,170

Percentage of companies active at the start of parliament that are not now dissolved = 50 per cent

Percentage change in Companies during Parliament = 16.8 per cent