25/10/2010
Small businesses are leading the UK's post-recession recovery and are driving the economy forward, according to a recent report.
The 'Green Shoots of Recovery' report by business support group Yoodoo reveals that 204,361 new firms were set up in the first half of 2010 - the highest amount in over a decade.
SME Web reports that the figure represents a 51% rise on the same six-month period in 2008, when the UK first entered recession. The UK economy officially exited recession in the final quarter of 2009.
The report also found that newly-formed businesses were much more resilient to difficult economic conditions. Just 0.6% of SMEs founded in 2009 have gone into liquidation or receivership, compared with a 4.5% average for firms set up between 2000 and 2008.
Most new business owners find cash flow hard to come by in the early stages, especially those who set up new firms in tough economic conditions. However, a combination of hard work, determination and invoice finance solutions can allow them to raise the funds necessary to invest in growth and achieve success.
Tony Heywood, CEO of Yoodoo.biz, said that the recession had created a new breed of entrepreneur, and that the new firms set up in the past couple of years were breathing new life into the economy.
"The recession left many people out of work or unhappy in work, and it is these people that are now using their own initiative to set up their business and help kick-start the economy again," BBC News quoted Mr Heywood as saying.
"Many of these people are not serial entrepreneurs, but instead are normal, hard-working people who have decided that they want to make a difference to their lives," he added.
Joseph Jeffries