Business birth data reveals record entrepreneurial spirit in 2014
New data released by the Office of National Statistics (ONS) shows that over 350, 000 new businesses were registered in the UK in 2014 the highest number since the government began recording business birth rates. Five thousand more new enterprises were created last year than in 2013.
John Allan, national chairman of the Federation of Small Businesses, is of the belief that the figures reflect the contribution of entrepreneurs to Britain’s economic recovery over the last five years, and argued that more people than ever ‘see self-employment and starting out in business as a rewarding career choice.
Suren Thiru, an economist at the British Chambers of Commerce, told the Financial Times the statistics were a true testament to the entrepreneurial spirit that exists in the UK.
The rate of business deaths relative to the total number of UK enterprises decreased slightly to 9.6 per cent, and the total number of businesses trading grew by over 100, 000. But Thiru warned that a rise in the total number of business failures was a warning sign? that more needs to be done to help support young firms, and added: This must include fixing the long-term structural failure of business finance in the UK, through a scaled up and a fully functioning Business Bank.
SME finance providers welcomed the news. Lisa Mayers, sales manager at Ashley Finance, said the figures indicate that the UK has entered an age of entrepreneurialism? and pointed to growth in the alternative finance market which has helped more small businesses secure funding.
Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics as well as running a tutoring company.
While new ONS figures have shown some 89, 000 new firms were established in 2015, London had nearly a fifth of them more than the total number of businesses in Scotland, Northern Ireland, Wales and the North East of England combined. more»