REVEALED: Data says business risk, insolvencies decreasing

The city is currently in a better state than Rockhampton. The Gladstone Chamber of Commerce and Industry president says the strong streak could keep going

In the last six months, the number of Gladstone businesses facing a high insolvency risk over the next year has halved from 18 to 9. Picture: Igor Sorokin

IN THE past six months, the number of Gladstone businesses facing a high insolvency risk over the next year has halved from 18 to 9.

According to the SV Partners Commercial Risk Outlook Report, 1.4 per cent of Gladstone businesses faced a high to severe threat of insolvency, compared to 1.6 per cent in Rockhampton.

SV Partners associate director Frank O'Neill said the data was "testament to the hard work and commitment shown by the town over a difficult 12 months".

"There are some potential big infrastructure projects coming to Gladstone which will bring sustained confidence and growth to the region, including the $1billion Gladstone Energy and Ammonia project announced late last year," Mr O'Neill said.

Gladstone Chamber of Commerce and Industry president Joe Smith said the economy had stabilised and was "beginning to pick up".

Mr Smith said a growth in market confidence among business owners and consumers was encouraging residents to spend more and further boost the economy.

"Previously there was some issues among people within Gladstone and the region not having certainty around jobs and the future whereas that seems to have settled down now, especially among some of the larger employers within town," Mr Smith said.

His advice to business owners was to have a regularly updated business plan.

"What most successful and long-term businesses in Gladstone do is they have a plan to ride out the lows and capitalise on the highs," he said.

"And speaking to other businesses in the region who have been through it helps, as well as obviously speaking to professional advisors."

Mr Smith said there were a number of factors which led a business to becoming insolvent including the lack of an "exit plan" or "succession strategy".

"Some business simply close down to due to the natural life cycle of the business ... (like when) the owners of the business looking to retire and there not being a market to find someone to take over," he said.

He said other businesses may have over-capitalised during the economic boom and then been forced to "generate income to pay off loans after projects had finished".