Connect with us

Hi, what are you looking for?

Editor’s Pick

Over 800,000 businesses created in the UK this year – near record highs despite economic stress

There were 808,000 new businesses created in the UK in the past year, still close to record highs despite the economic stress of inflation and rising interest rates.

Thats according to private equity investment firm Growthdeck, who says that the Covid-19 pandemic unleashed a new wave of entrepreneurialism in the UK. Many individuals have taken advantage of the opportunities available through technology and flexible working to start new businesses.

The number of new businesses created last year was only slightly down on the 836,000 created in 2020/21, which was a record high.

The sector that saw the most new businesses created in the past year was retail, with 98,000 started last year, largely driven by online retail. The online retail sector has been a major growth industry for a number of years. The pandemic supercharged this trend as entrepreneurs took advantage of a more accessible e-commerce marketplace to turn hobbies into business ventures.

The red hot jobs market in the past two years means that recruitment is one of the sectors seeing the biggest rise in new businesses being created. Growthdeck’s figures show that the number of new businesses created in the recruitment sector rose by 11% from 8,000 to 8,900 in the last year as more recruiters sprang up to meet demand from both businesses and individuals.

Ian Zant-Boer, CEO of Growthdeck, says: “Despite the economic uncertainty hanging over the country, the number of small businesses that have been created is a sign of longer-term optimism.”

“The economic headwinds facing the UK mean we’re likely to see the number of startups start to fall in the coming months. It’s worth remembering however that the last recession triggered a wave of new startups. New businesses can grow strongly out of a recession so long as funding is in place to help them thrive.”

Growthdeck says the continued high level of new business creation highlights the need for finance to help these businesses scale up. As the country heads towards a recession, banks are likely to pull back on lending to small businesses so it is vital that the Government does everything it can to ensure businesses have access to the investment they need to scale up.

Schemes such as the Government’s Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) offer access to crucial equity finance for scaleup businesses – something that can be in short supply during a recession.

Zant-Boer says: “EIS and SEIS already have a track record of funding some of the best British businesses to emerge from the 2008/9 financial crisis. We expect to see the same happen again through the current period of economic stress.”

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Elon Musk talks about his company’s Starlink project at the Mobile World Congress, Barcelona, Spain, June 30, 2021. — BRISA PALOMAR / PACIFIC PRESS/SIPA...


PHILSTAR FILE PHOTO The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official...


Television (TV) advertising is shifting toward addressable TV, a service that allows advertisers to show different ads to different audiences watching the same program,...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Wayne Janse Van Rensburg, Chief Executive of education company Learndirect talks to Business Matters about the inspiration behind their business, which...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Rokt, the global leader in ecommerce technology, is today announcing a new partnership with Oracle Red Bull Racing, the leading Formula...


PHILSTAR FILE PHOTO By Luisa Maria Jacinta C. Jocson, Reporter The Finance chief on Friday said he would rather improve tax administration to generate...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.