According to the latest Entrepreneurs Index report commissioned jointly by Barclays and the Business Growth Fund, data shows that more than 90,000 new businesses were set up in the first half of 2013.
This is an increase of 3.4 per cent when compared to figures recorded in the first half of 2012 and brings the total number of businesses active in the UK to 2.82 million – an impressive increase from the 2.73 million on record at the same point last year.
Furthermore, while no official forecasts have been released by the Entrepreneurs Index for the remaining six months of 2013, separate research conducted by Startup Britain indicates that this pace of growth is set to continue into 2014. In fact, it is believed that, by the end of 2013, British entrepreneurs will have established more than half a million new businesses.
Richard Phelps, of Barclays Wealth and Investment Management, believes that the latest results from the Entrepreneurs Index demonstrate the resilience of economic growth prevalent in the UK today.
He says; “Entrepreneurs are early adopters by nature and quick to seize market opportunities, meaning that entrepreneurial activity is often viewed as a leading economic indicator.
“It is clear to see that new businesses – and the individuals that set them up – are becoming an economic ‘tour de force’.”
According to the results, London is unsurprisingly one of the country’s strongest markets in terms of business creation. In the period between March 2012 and March 2013, the number of businesses choosing to establish a foothold in London grew by around 12,000 companies, equating to a percentage increase of 3.5 per cent.
The research also highlighted the financial perspective of new start-ups, taking into account initial operating costs as a means of judging how feasible the prospect of continued new business growth will be. Apparently, the news is very good indeed – 49 per cent of British entrepreneurs surveyed claimed to have set up their business with a starting capital of less than £2,000.
Furthermore, around 10 per cent of all new small businesses participating in the report required precisely zero start-up funding. This indicates that the core of British businesses, whilst relying on banks and suppliers for growth and credit requirements on occasion, are managing to build from grassroots off their own backs and are therefore strengthening the economy whilst requiring very little financial support – something which will, hopefully, see them build strong foundations for future.
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