11/10/2010
The number of new companies being set up across the UK has risen for the first time in 18 months.
A study by the Royal Mail found that more than 39,000 businesses have been started in the UK in the last six months. This boost in new businesses has caused a 13 per cent rise in the number of new companies in Britain. In comparison to the previous six months, there has been an additional 4,400 SMEs being established between the beginning of March and the end of August.
The results indicate a stark turnaround in the UK market which in the last 18 months has seen a steady decline in the amount of new companies being launched.
According to the results of the research, Sunderland in Tyne and Wear is the fastest growing city in terms of businesses having been established there in the last six months, while Rotherham in South Yorkshire and Stockton-on-Tees in Cleveland were found to follow closely behind.
Whilst many of these new business owners will have used personal savings to launch their new company, other sources of funding such as sales finance, may see a rise in demand as business owners look to consider alternative types of funding to the traditional business loan.
Keith Jones, head of data strategy at the Royal Mail told New Business: "The picture for start up companies in the UK is optimistic and we should take this as a good sign that throughout the UK there is a lot of opportunity and entrepreneurial spirit despite the difficult economic climate."
Hannah McLaverty-Williamson