Most bankruptcies in the north

Financial crisisFinancial crisis.Photo: pixabay.com

Risk taking northerners go bankrupt more often than sober Southerners. Economy Professor thinks that different personality traits in the regions come into play.

Dagens Næringsliv has gone through nearly 24,000 bankruptcies over the past five years and there is marked difference between the regions.

The findings are in line with previous surveys which show that between 2001 and 2016 there was 15.4 bankruptcies per 100 businesses in Northern Norway.

The proportion of bankruptcies for the south is 10.7 percent. That means 44 percent more frequent bankruptcies in the north than in the south.

Professor Lasse Lien at Norges Handels-Høyskole (NHH) does research on the subject and think that part of the explanation may be found in different personality traits.

– Both macro and micro economic factors come into play. Something caused possibly by the mentality of the various regions.

Northerners might be a little more willing to take a risk, while southerners are known to be cautious, he says, and gets support from investor Johan Petter Barlindhaug of Tromsø.

– I actually think people minds play a role. This is part of the coastal culture: You must use the opportunity when it’s there. In the Inland one harvest when the time is right, says Barlindhaug.

There are also several other divisions in bankruptcy statistics. Young and small businesses go bankrupt more frequently, and men go bankrupt more often than women. Most bankruptcies are to be found in the construction industry, followed by café’s and restaurants.

 

Source: NTB scanpix / Norway Today

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