Rise in Start-Up Businesses
Recent figures show a rise in start-up businesses.
The news comes despite a minimal growth in UK GDP in the second quarter of 2011, which has been blamed on a number of ‘one-off’ factors including the Royal Wedding and the extra bank holiday, as well as the after-effects of the earthquake and tsunami that hit Japan in March this year.
Record warm weather in April has also been blamed for the UK economy’s sluggish growth, which grew by just 0.2%.
However, against the odds, the number of new businesses being formed in the UK is on the rise and is at its highest since the recession began. According to research from accountancy firm Wilkins Kennedy, 396,000 new businesses were created between 2010-2011 compared to 362,000 in 2009-2010.
The figures haven’t been as high as the current levels since 2006-2007, when 450,000 new businesses were created.
“Despite continued economic uncertainty, there seems to be a consensus now in the UK that it is time to get on with business and bring new commercial ideas to life,” says Kevin Walmsley, partner at Wilkins Kennedy, according to Real Business.
“Every recession also presents its own opportunities. The fact that there are small and medium sized businesses being established indicates that there are still entrepreneurs out there who are confident enough in their business model to launch their own company.”
There are many other potential theories for the positive rise in new businesses, one such reason being that employees who have been made redundant due to cost-cutting measures are taking the opportunity to ‘give it a go’.
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