A record number of businesses started up in 2003, with over 465,000 budding entrepreneurs taking the plunge, new figures have revealed.
Quarterly research by Barclays found the number of startups rose a massive 20 per cent from the 391,000 firms created in 2002 and was the highest level since the bank began recording startup figures in 1988.
Barclays said that startup numbers have risen steadily in recent years, with 2002’s figure 4.5 per cent higher than the previous year.
The leisure and motor service sectors saw the largest growth in startups last year, with increases of 48 per cent and 43 per cent respectively. Conversely, the number of new catering firms fell by 28 per cent.
Regionally, the South West saw the most businesses start up outside London, with 18 new firms per 1,000 people. The South East followed closely with 16 businesses per 1,000 people. The national average was 15 firms per 1,000.
The record number of startups is further evidence of the sky-high optimism enjoyed by entrepreneurs about the year ahead, following improvements in the economy.
Previous studies have also shown that ‘being your own boss’ has become a popular lifestyle choice for employees and students, with nearly half of undergraduates saying they wanted to be an entrepreneur when they left university.
Alison Hopkins, managing director of small businesses at Barclays said: “Britain’s budding entrepreneurs demonstrated their confidence in 2003.
“The record number of startups reflects the combination of people’s desire to start a business and a favourable economic climate.
“In addition, we may be seeing a shift to self-employment in the wake of a decline in opportunities for employment in the private sector, and this coupled with the continuing focus on quality of life, could explain this very positive upwards trend,” she said.
