Despite a record year for bankruptcies in 2009, and a record, too, for the number of jobs lost as a result, the report shows that only 15% of small businesses are at an increased risk of going bust in the current economic climate. Low-risk companies account for 72% of all SMEs, with medium-risk companies representing a further 13%. That compares with high-risk figures from Wallonia of nearly 17% and low risk of 72%; Brussels, meanwhile, scores less well with nearly 27% high-risk and about 57% low-risk.

The study took in 502,000 SMEs across Belgium, including one-man operations but excluding the professions (such as architects, doctors, etc). It studied a number of economic indicators, like profitability, productivity and liquidity, to determine a risk profile.

For a great many of the indicators chosen, the study shows a growth period from about 2002 to 2007, then a slowdown or stability in 2008. By the end of that year, the financial and economic crisis was beginning to make its effects felt. The median level of profitability climbed from 6.9% in 2000 to 10% in 2007, but in 2008 the figure dropped to 8.8%, effectively wiping out two years of growth.

The sectors representing financial services, IT, healthcare and communications had the highest profitability – up to 15% – while car manufacturing, textiles and catering had the lowest – down as far as 3.5%.

The increasing pressure on businesses is reflected in the evolution of the number of days credit allowed by suppliers. This has been constantly dropping since 2000, when the median stood at 50 days, while in 2008 it was down to 40 days. At the other end of the scale, SMEs are also demanding swifter payment from their own creditors, from a median of 52 days in 2000 to 46 days now.

www.unizo.be/kmorapport