Start-up rate stays strong
Mar 26 2009
The rate of new business start ups increased in 2008 as more people who are being made redundant look to begin new ventures.
Research from Barclays showed that there was a one per cent rise in the number of new businesses starting, to 436,000 firms from 432,300 the previous year.
Steve Cooper, local business managing director at Barclays, says the data shows there are still opportunities in challenging times.
'These figures may seem surprising given the current economic climate. There could be a number of reasons for the robust start-up market, including individuals made redundant opting for self-employment,' he adds.
Figures from the bank also show more women are starting their own firms than previously, with Cooper predicting the normally male-dominated world will become more equal.
Yorkshire and the East Midlands were identified as well-performing areas, seeing an eight per cent and six per cent rise respectively, however, Wales and the south-west both saw declines.
Start-up businesses were mainly focused on the health, education and social work sectors, with construction and property service firms seeing a decline in new companies.
Figures from the Chartered Management Institute earlier this year showed that five per cent of managers would consider setting up their own firm if made redundant.