The strength of the UK’s start up scene is growing, according to new research that shows that 90 new businesses are set up every hour.
Business lender Iwoca says that the figures show that the UK continues to offer encouragement those looking to start and grow a business from scratch. Seema Desai, iwoca’s chief operating officer said: “Despite the prevailing headwinds of an impending recession, we are encouraged to see that so many businesses have been created during the first half of this year.”
Analysis of Companies House data reveals that 340,534 businesses were registered in the UK between January and June 2021, an increase of 32% from 257,243 over the same time period in 2019.
Christoph Rieche, iwoca CEO and Co-founder, said: “It is fantastic to see the creation of so many businesses during the first half of this year, they are testament to the entrepreneurial spirit which characterises our vibrant economy.
Many of these businesses will be unnecessarily constrained by cashflow. At iwoca we turn cashflow into a superpower enabling them to grow faster and worry less. We look forward to working with many of them.
A closer look at iwoca’s Small Business HotSpots UK 2022 shows that London saw the highest rate of business creation in the first half of this year with 1,587 businesses being created per 100,000 people. This was followed by the West Midlands (571) and North West (554). Scotland appeared bottom of the list with a rate of 338 new businesses per 100,000, with the North East in second last place with 345.
However, despite the strength of the start up scene, challenges remain, not least in distributing seed investment across the country in areas that have previously been overlooked. According to one investor, Tim Mills, Managing Director at ACF Investors, the UK investment landscape still lacks regional diversity.
“Certain regions are very good at certain things,” Mills said. “London is a massive pool of talent, capital and customers, as well as entrepreneurs, but that dynamic just isn’t replicated across every region. For us, the question is where is the right place for that business to grow? We have successes in Manchester and Liverpool with a series of digital media, gaming type investments and these regions are gaining momentum as sector experts in these fields”.
And with the post-Brexit landscape becoming clearer, the UK remains a leading destination for overseas companies. And that means understanding the options open to your business can make a big difference to your growth story. We’re right here for all your needs, and you can contact us for help and support in a number of areas, from tax and payroll to accounting and banking.