In the past year, over 800,000 new businesses were created in the United Kingdom. This is close to record hights, despite the economic stresses of inflation and rising interest rates ...
This has been the biggest growth sector for a number of years as people take artisan hobbies and turn them into businesses. The pandemic supercharged this trend.
Recruitment is seeing a big rise in new businesses too. The red hot jobs market means an 11% growth int he last year in just recruitment businesses that spring up to meet demand from both businesses looking for staff and individuals looking to move jobs.
It's surprising that there is so much growth in new businesses. You'd think that with the economic gloom hanging over the country, there would be a downward trend as people want to be secure in their employment, but the facts so the complete opposite. This is a sign of long-term optimism throughout the country and I cetainly applaud it.
However, a number of these new businesses may fail in the coming months as self-funding runs out and they're not making the profit they need to sustain themselves. New businesses can grow strongly out of a recession, but you have to get the finances right, and listening to your accountant is incredibly important.
Banks are likely to pull in their lending if we're heading into recession so it really is vital the Government offers the same level of support to small businesses as they are to individuals.
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) may play a big part in the future of the small business community in the United Kingdom.
Liz Truss knows that small businesses drive the economy forward, so I look forward to seeing what support she and Kwasi Kwarteng will announce in the Autumn Statement.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.