More than 90 businesses created every hour
A new survey has revealed that 93 new businesses were created every hour across the UK in the first half of 2022.
According to the data, despite economic headwinds, rising inflation and rocketing energy costs, the number jumped by 18 per cent year on year.
Data from Companies House shows over 402,000 businesses were registered between January and June 2022.
Highest rate in London
The survey was carried out by small business lender iwoca, which found that London had the highest business creation rate per capita with 1,587 new businesses per 100,000 residents, followed by the West Midlands with 571.
Other data from the Office for National Statistics indicates that the driving force is that many workers are just quitting their jobs and chancing their arm to strike out on their own, rather than being driven by redundancies.
The iwoca analysis also revealed significant growth in the number of new businesses outside of the main cities. The Isle of Wight saw the highest percentage increase year-on-year with a 125 per cent increase, followed by Blackpool (98 per cent) and Oldham (87 per cent).
Seema Desai, iwoca’s chief operating officer said: “Despite the prevailing headwinds of an impending recession, we are encouraged to see that so many businesses have been created during the first half of this year.”
Starting up a new business and what you need to know
Set up a business plan
The old phrase failure to prepare is preparing for failure. So, prepare a roadmap for the future which should set out long term objectives, estimates and forecasts and keep it updated.
Know your market and research it
Imitation is the sincerest form of flattery, so see what your competitors are doing and borrow their methods, and even talk to their suppliers or customers if you can.
Get your finance in order
Interest rates are creeping up, so whatever you borrow you need to know you can pay it back.
There are many business lenders available, and grants may be available for start-ups, particularly in the R&D area.
Find the right premises with the best IT facilities
Should you buy or lease or will you operate from home? Are there access points for the latest technology and is the internet speed adequate for IT requirements? What are the business rates?
Everyone needs a helping hand
Your professional adviser can support you through the tricky early period and provide support with business planning, R&D information, HR advice and finding premises.
Starting a new business? We have dedicated accountants who specialise in business start up services. For help and advice on related matters, contact our team today.
