UK new business start-ups reach record levels

Research from Barclays Bank, released today, shows that 288,000 new UK businesses have been started up in the first six months of 2004, almost 25% up on the same period last year (233,000). This is the highest level recorded since Barclays started tracking the market in 1988.

Regionally, London led the way in the national rankings of business start-ups with local authorities in the Capital occupying the first eight places. Outside London, Blackpool recorded the highest start-up rate followed by Somerset and Manchester (see table 1). However looking at regions as a whole the South West was the top hotspot outside London for attracting entrepreneurs (see table 2).

At an industrial level, leisure, business and professional services saw the greatest increase in start-up volumes between the first half of 2003 and 2004, an increase of 37,000 new firms – more than two-thirds of the total rise in starts (see table 3). However, hotels & catering had the fastest growth rate in start-ups between the two periods, more than 70 per cent – which could be as a result of sustained above average growth over the past two years.

Richard Roberts, Head of Small Business Research at Barclays comments: “The record levels we have seen so far this year reflect the large rises in people becoming self employed to boost their income or achieve a change in lifestyle. The ability to do this has been assisted by the strength of the economy which has provided opportunities for individuals to set up in business.”