In Portugal, according to Informa D&B Barometer, in 2013 were created more than 35 thousand new businesses, an increase of 12,8% compared to the previous year; while the dissolution of business decreased by 20%. However, almost half of new companies have a lower capital stock of five thousand euros.
On this issue, Daniel Bessa, economist and ex Portuguese Minister of Economy, said in an interview published in Dinheiro Vivo that “in a slightly more complete analysis, to two or three years, a large overlap would check between the new and closed companies”.
In relation to this, António Vale, CEO of Value Added Partners, emphasizes that “an economically viable company can also be financially unviable and, therefore, become economically unsustainable”. Therefore, it is essential the strategic planning and management control to prevent dissolution of companies.
Nevertheless, when the damage is done, exist the Business Recovery process, that allow its recovery, avoiding premature closure of business. To learn more about this subject, click here or see our presentation onSlideshare (Portuguese).
[photo credit: Victor1558]
