What are the patterns of business failure in the UK What are the main Essay

What are the patterns of business failure in the UK What are the main explanations for why businesses do not survive Which explanations are the most and least convincing - Essay Example Failure usually follows a similar pattern in both small and large enterprises when faced with financial crisis in the wider economy. With the economic downturn of 2008, the business climate has become much tougher in the UK for new, upcoming firms. Importantly, in addition to the failure of business due to economic factors, there are many other reasons that contribute to this eventuality (Bartelsman, Scarpetta, & Schivardi, 2003). Hence, taking this into account, this paper aims to analyse the trends related to business failure in the UK. A critical assessment of the related factors is only possible with a deeper understanding of the theoretical framework. Furthermore, the paper also seeks to extract deeper insight into the causes that result in the failure of business. The assessment will bring in to the limelight the factors that play a dominant role in leading entrepreneurs towards business closure. Upon assessment of the reasons it identifies, this paper will also discuss the factors that appear to be least convincing for justifying failure. The global landscape for doing business is increasing dual perspectives for the business. The dual impact can be regarded as the direct impact of globalisation. On one hand, the globalisation has increased the opportunities for business to explore different countries and new markets with limited resources required. Also, globalisation has offered new ways to introduce innovative ideas. Yet with this opportunity, global business simultaneously faces increasing challenges as globalisation has increased competition not only from local competitors but from international rivals as well (Arbaugh and Camp, 2000). The number of business failures gives the clear signal of the downfall of the emerging market. According to one report, the business index goes down from 93.5 to 90.2 in the year 2014. According to D&B (2012), the decline in the index was from 5.8% to as low as 3.5 % in the same