According to figures released by StartUp Britain, the number of startup businesses In Britain hit 500,000 in 2013, the first time that the figure head ever been achieved in the UK.
Emma Jones, the co-founder of StartUp Britain was quoted as saying that:
“These figures come directly from Companies House and show we’re on target to hit half-a-million new registered businesses for the first time… When we embarked on this journey, our mission was to make sure everyone knew that starting a business was a valid career choice. We think that message has hit home.”
According to official government statistics, this now means that micro and small businesses employ seven million people, accounting for 95% of all companies. The news only reinforces the view that the number of small startups in Britain continues to rise. Last year 484,224 businesses were started, compared to 440,600 in 2011.
Why Are We Seeing Such An Increase?
One of the reasons we are seeing such an increase in the number of new businesses in the UK appears to be the cost involved. According to the Telegraph, a nation of ‘bootstrapping entrepreneurs’ are taking charge, and now almost 50% of small businesses are setting up for under £2,000. They’re also reporting that some start with no cash whatsoever.
However, as well as this, it isn’t only the startup cost that a startup business entails, and prudent financial backing is essential. Now more than ever it is vital for businesses to be on the right financial footing, and there are now numerous aids to help them, with a range of banking options available at their disposal form both banks and from building societies.
Are We Encouraging Enough Entrepreneurs?
In spite of these figures and the obvious increase in the number of startup businesses in the UK, star of Dragons’ Den Theo Paphitis still claims that we are not doing enough to help entrepreneurs, claiming that entrepreneurship should be on the national curriculum in order to ensure that fewer small businesses fail within their first year.
At present, around 50% of small businesses fail within their first few years, and this is a damning statistic for the UK economy. What’s more, it is also off-putting for many would be business owners who could help revitalise the British economy.
However, one this is for certain, and that’s the fact that small business startups are currently on the rise; and that can only be a good thing.
Cover photo credit: BIS