The Banking Sector and Small Firm Failure in the UK Hotel and Catering Industry

Considers the causes of the high bankruptcy rate in small firms in the hotel and catering industry and suggests that although the major causes of failure must lie within the scope of the small firms themselves, the contribution and actions of the major lending institutions have done little to help to alleviate this situation. Explores the present relationship between the small firms, the banks and the Government and considers the effect that the turbulent competitive market of the lending institutions has had on the small firms in the industry. Finally the structure and nature of relationships between banks, small firms and the governments of other European countries are considered before conclusions are drawn.