The number of start-up businesses opening their doors has reached the highest level since records began 20 years ago, according to new figures.
A record 471,500 new businesses started up in 2007, says Barclays – despite ‘increasingly difficult’ trading conditions during the second half of the year.
The number is 17% more than in 1988, and an increase of 3% on 2006 – almost 20% more than the average of 393,000 new businesses a year,
This equates to around 14 businesses per 1,000 workers in the UK, compared to the average figure of around 12 per 1,000 workers.
Last year also saw business closures ‘increase markedly’, with 498,900 shutting their doors – an increase of 8% since 2006.
John Davis, the marketing director of Barclays Local Business, said the last 20 years had seen business formation and enterprise become ‘firmly entrenched’ in the British psyche.
“2007 recorded the highest annual volume of business starts, partly driven by an ongoing boom in the construction sector.
“Over the last year, close to 20% of all start-ups were construction related, demonstrating that Brits’ obsession with home improvement is far from over,” he said.
He added that this year, expectations are for slower economic growth and a weaker housing market.
“This is likely to curtail the buoyancy of start ups. We do not expect further start-up records in 2008, but we do expect the small business sector to be resilient,” he said.
© Crimson Business Ltd. 2008
