The business insolvency rate fell in Scotland for the first time in four years in 2012, according to figures from KPMG.
The accountancy firm found that Scottish corporate insolvency appointments fell by six per cent in 2012 to 1,200, from 1,277 in 2011. While the data signals a change in trend, it is still well above the figure of 803 recorded back in 2008.
A number of suggestions have been put forward for the reason behind the drop. Trading conditions are still tough, so it seems like a significant improvement in the economy can be ruled out. Perhaps then companies are learning to cope with these conditions better than they have done in the past; adjusting their aims and targets and reducing the risk in their everyday business in order to consolidate stronger areas of trade.
The other possibility is that there are now fewer weak businesses left in existence. Those that couldn't keep going when it came to the crunch have been wiped out or snapped up by new owners or rivals, leaving a sounder collection of businesses in operation north of the border.
Blair Nimmo, head of restructuring at KPMG, commented on the data: "Those companies have become adept at 'fighting the fight' and adapting their operations to cope with tough economic conditions."
He added, however, that the reduction in the insolvency rate is "not significant enough to indicate the many challenges posed by the current global economic climate have been completely overcome", suggesting that those businesses looking to maintain their position or grow need to keep a close eye on the goal and work hard to achieve their financial targets in the coming years.
He advised Scottish businesses to keep a tight leash on their expenses and predicted that there will be "very little speculative investment or transactional activity" 
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