Member Article

Enterprise at record high

The number of start-up businesses opening their doors has reached the highest level in 20 years, 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. Last year also saw business closures ‘increase markedly’, with 498,900 shutting their doors - an increase of 8% since 2006.

The North East saw the highest increase, along with the West Midlands, at 11%. Yorkshire was the only region which did not see an increase, instead falling 1%. New firm formation was particularly strong in Construction (20 per cent) and Health, Education & Social Work (19 per cent).

John Davis, Marketing Director for Barclays Local Business, said: “It is clear that the past 20 years have seen business formation and enterprise become firmly entrenched even if there is the odd hiccup in any given year.“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.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .