The number of entrepreneurs setting up limited companies has surged by over 100% over the past five years according to a new report.
Experian says that the number of entrepreneurs in the UK has jumped by 117% since 2005, fuelling a 41% per cent increase in the total number of companies in the UK.
The firm’s business data also shows that these small businesses over the last five years have also managed to maintain the lowest insolvency rate and second healthiest financial strength score compared to other types of businesses.
The analysis of over 4.3 million UK directors on Experian’s business database reveals that the explosion in the number of directors associated with one and two man businesses was spearheaded by male entrepreneurs (up 146 per cent) and, in particular, by male directors in the younger age groups (under 24 saw a 62 per cent increase and 25-29 increased by 54 per cent).
The number of female entrepreneurs also saw a significant increase – up 72 per cent over the last five years. At the opposites end of the spectrum to men, this was led by older females – with a 29 per cent increase in the 60-69 age group and 13 per cent rise in the over 69 bracket.
Experian’s analysis reveals that the business/management and consultancy sector saw the highest number of one and two man businesses (5 per cent of all these business types) with a 181 per cent increase in numbers over the last five years. Businesses in this sector typically fall into the training, management consultancy, public relations and marketing sectors.
In terms of which areas witnessed the biggest growth in entrepreneurship, London has the highest concentration of one and two man businesses (31,449) – having seen 105 per cent growth in the last five years. Birmingham had the second highest number (10,207) with growth of 188 per cent.