The number of businesses going bust in the UK is projected to fall to its lowest level in six years, accountants have calculated.
BDO Stoy Hayward believes yearly figures will show that failures dropped by 8% in 2004 compared with last year, when 17,550 businesses were forced to close.
This would bring the number of failures for 2004 down to 16,150, a rate of 0.9% and equivalent to an average of 310 businesses going bust per week.
However, recently introduced rules making it easier for businesses to go into administration rather than fold, have helped improve figures for business survival.
Also, separate rules allowing failed entrepreneurs to start up a new business after 12 months mean that more business brains are being allowed to learn from their mistakes.
BDO said failure rates would edge up next year, as faltering consumer spending, oil prices and a weakened global economic outlook take their toll, but adds that closures will remain far fewer than in recent years.
Shay Bannon, business recovery services partner at BDO said: "Although the number of business failures is set to rise, they are still well below the levels of 10 years ago so there's no cause for panic.
"Having said this, imprudent firms could suffer if they do not reassess their company finances and ensure that adequate plans are in place to secure the future of their business should the worst occur."
Some 2,660 service sector companies are expected to have folded by the end of 2004 - a drop of 21% from last year's figure of 3,370.
There was good news too for the manufacturing sector as failures drop from 2,440 to 2,230, there lowest ever level since current records began in 1993.
