Last year was a notable one for the country, as it saw a record number of small business startups. This is a testament to the strength and determination of the UK's entrepreneurial community, who refused to let challenging economic conditions hold them back ...
Us British love food on the go, and many small business startups began in 2023 to feed us!
According to the New Startup Index, a report by NatWest and Beauhurst, over 900,000 new companies were launched in 2023, marking a 12% increase from the previous year. One of the key factors contributing to this surge in small business startups is the rise of online retail.
Over 82,000 new businesses entering the market and this fact isn't really surprising considering the pandemic accelerated the shift towards e-commerce, making it a lucrative opportunity for aspiring entrepreneurs.
The property letting sector also saw significant growth, with 49,000 new businesses entering the market. This is a reflection of the strong demand for rental properties in the UK, as well as the potential for high returns on investment.
Another interesting trend highlighted by the report is the rise of street food stalls and takeaway businesses. With 21,000 new businesses in this sector, it is clear that the UK's love for food on-the-go is still going strong.
This reflects the adaptability of small businesses, as they found new ways to reach and serve customers during the pandemic. Despite lockdown restrictions, many street food vendors and takeaways continued to operate, providing a much-needed source of income for their owners.
While the report showed a significant increase in small business startups, it also highlighted the sectors that saw slower growth. These included packaging, passenger transport, and events management.
This can be attributed to the impact of the pandemic on these industries, as well as the challenges posed by Brexit. However, with the easing of restrictions and the UK's post-Brexit trade deals, it is expected that these sectors will see a rebound in just a few years.
The rise in small business startups is not only a positive sign for the UK economy, but it also has a significant impact on job creation. The report revealed that these new businesses have created over 1.2 million jobs, with an average of 1.3 jobs per company. This is crucial, especially in the current economic climate, where job opportunities are scarce.
"Small businesses are known to be major contributors to job creation!"
The report also highlighted the regional distribution of these new businesses with London seeing the highest number of startups, with over 200,000 new companies launched. This was followed by the South East and the North West. However, the report also noted that the North East and the West Midlands saw the highest growth rates, with a 16% increase in new businesses compared to the previous year. This shows that the entrepreneurial spirit is not limited to major cities, but is also thriving in smaller regions across the country.
The record number of small business startups in 2023 is a testament to the resilience and innovation of the UK's entrepreneurial community. Despite facing economic challenges, small businesses continue to thrive and contribute to the growth of the UK economy.
With the right support and resources, these new businesses have the potential to become major players in their respective industries, driving innovation and creating job opportunities.
The future looks bright for small business startups in the UK.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about how you can launch your own small business startup, it may be a great idea to call me on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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