Insolvians in Austria: Why adaptability is the key

Insolvians in Austria: Why adaptability is the key

growing bankruptcies on the Austrian market

The current economic situation in Austria throws a shadow on numerous companies. A current analysis of KSV1870 has shown that 37.1 percent of bankruptcies are due to internal, avoidable defects. This represents an increase of 8.1 percentage points compared to the previous year and raises questions about the resistance of the Austrian corporate landscape.

causes in detail: lack of adaptability

The difficulties that many companies experience can not be explained by external factors such as a persistently high inflation or labor shortage. The main problem is often in the inability to react quickly to market changes. Inertia and holding on outdated strategies prevent companies from taking new opportunities. The willingness to adapt to the dynamic conditions does not seem to be given in many cases.

The influence of the external conditions

Although companies have been faced with profound economic challenges in recent years, the current conditions seem to be less serious. Nevertheless, many continue to struggle with declines of sales, which are often due to a lack of orders. This discrepancy suggests that the problems are less due to external circumstances than to the internal management of companies.

social implications of the bankruptcies

The increase in bankruptcies not only has negative effects on the companies concerned, but also on society as a whole. Jobs are lost, local economic cycles are interrupted and consumers' trust can be damaged. The challenges that companies stand in front of a profound reflection on the need for surgical adjustments and innovation strategies.

A call for transformation

In order to be successful in today's economy, companies have to learn to adapt to changes and at the same time question their business model. The focus should not only be on cope with crises, but also to proactively identify opportunities that are offered by transformation. The analysis of KSV1870 is a wake -up call for companies to rethink their strategies and dynamically stand up to avoid future bankruptcies.

- Nag