New data from the Centre for Entrepreneurs has revealed a record-breaking number of business formations in June – a 47% increase on the same period last year. The increase has offset a significant drop in March, April and May of 19%, 29% and 3% and suggests the beginning of an entrepreneurial recovery.
Every region and devolved nation across the UK saw an increase in formations in June with London and the Midlands leading the way with an increase of 60%. There is also evidence of an emerging “Covid economy” as sectors related to the pandemic saw a huge increase in the number of formations.
There were major increases in businesses formed related to disinfecting services (+400%), wholesale of pharmaceuticals (+196%), and research on biotechnology (+69%).
Luke Davis, CEO and Founder of SME investment firm IW Capital, said: “This has been a turbulent period for many businesses across the country, one not experienced for generations, but this has not deterred the UK’s ecosystem of founders and entrepreneurs and the ambition and innovation that they have. We have seen a huge amount of drive from SMEs to grow and scale, through investment from the private sector – which has been incredibly supportive considering the circumstances.
“The future of the UK economy relies on the talent and passion of business leaders and founders, they are the people who want to grow their business and employ more people, not as a part of subsidised programme but for the good of their business. When Government support begins to come to an end, supporting this community will be of the utmost importance.”