Latest reports by Dun & Bradstreet highlight a 48% increase  in the number of small businesses going bankrupt over the last 12  months, while small business start-ups fell by 95 per cent over  the same period.

According to Dun & Bradstreet CEO, Christine Christian, Australian business failures have trended steadily upwards since  2008, growing over 30 per cent in the last three years.

There are some businesses who’d like to employ staff, but the future is uncertain so they’re holding off. The traditional cycle of micro businesses entering the market, growing and becoming larger businesses, in the main, is just not happening.

People are worried about rising costs of living. They’re worried about the carbon tax. Changing workplace health and safety and  industrial relations legislation is a big impost on  business.  Increased superannuation is another slug on business. Tightening credit and the costs of compliance also take their impact.”

Dun & Bradstreet’s recent Global Business Failures Report revealed that Australian businesses continue to present a high insolvency risk when compared with the rest of the world.

The report indicated that with its steady increase in bankruptcies, Australia is now being classified in the same risk category as a number of countries being impacted by the euro-zone debt crisis,  such as Italy, Portugal, Spain and the United Kingdom.