SMEs continue to dominate when it comes to corporate insolvencies in Australia, according to the corporate watchdog’s 2013-14 overview of reports provided by external administrators.
The Australian Securities and Investments Commission received 10,073 reports from administrators during the period, with 86% of the reported insolvencies relating to companies with assets of $100,000 or less.
Eighty-one percent of insolvencies during the 12 months involved companies with 20 employees or less.
ASIC reports creditors of collapsed SMEs are also highly unlikely to recover their debts, with 97% of creditors receiving between zero and 11 cents in the dollar after an administration process.
The top three nominated causes of corporate failure identified by ASIC are: inadequate cash flow or high cash use (41%); poor strategic management (37%); and trading losses (33%).
Telstra public WiFi trials to kick off in November
Visitors to Bourke Street Mall in Melbourne, Bondi Beach in Sydney and Queen Street Mall in Brisbane will be among the first users of Telstra’s public WiFi network.
Business Spectator reports the telco will roll out trials of the network in 1000 hotspots from November.
Access to the network will be free during the selected spots until the network is officially launched in early 2015.
Other locations to be included in the trial include Adelaide’s Rundle Mall, Hobart’s Elizabeth Street and Perth’s CBD.
The WiFi will initially run from payphone sites, although Telstra retail stores and exchange buildings will eventually be added to the network.
Shares up on open
Aussies shares have posted a lukewarm result this morning, as tensions in Hong Kong play out against a strengthening of commodity prices overnight.
The S&P/ASX200 benchmark was up 2.2 points to 5266.4 points at 11.57am AEST. On Monday, the Dow Jones closed 41.93 points lower, down 0.25% to 17071.2 points.