The Telegraph: Entrepreneurs are starting new companies at a record pace of 80 an hour, according to data collected this year ( July 2016 )
First published in the The Telegraph Newspaper on 12/07/2016 here written by Kate Palmer and features an Empact Ventures supported startup, JemmaCo BeautyCare on the StartUp Britain bus, one of our client’s ventures.
Research from StartUp Britain, a Government-backed national enterprise campaign, shows 342,927 new businesses were registered with Companies House between January and June, compared with 608,110 for the whole of 2015, itself a record year.
Bromsgrove in Worcestershire was responsible for the majority of start-ups outside London, where 29 people for every 1,000 residents started their own businesses between January and June.
East Hertfordshire, Lichfield in Staffordshire and Warrington in Cheshire were also popular start-up hubs outside the capital.
The City of London experienced the biggest crop of small companies, with 500 start-ups for every 1,000 residents, although this was largely due to the Square Mile’s high density of offices rather than homes.
The figures suggest 2016 will be a bumper year for small businesses, already beating the 70-an-hour pace of new company registrations clocked in 2015, the biggest year recorded by Companies House to date.
Separately, fewer businesses are also going bust, according to insolvency data covering the January to March period, despite the high-profile collapses of BHS and Austin Reed – the latest victims of high street decline this year.
Government figures show 3,694 companies entered insolvency in the first three months of the year, 3.6pc lower than in the same period during 2015.
“Entrepreneurship is a personal endeavour and there will always be risk and uncertainties,” said Matt Smith, a director at thinktank the Centre for Entrepreneurs, which he set up with pizza tycoon Luke Johnson in 2013 and backs StartUp Britain.
Jemma Cooper set up her massage training business last year but said ‘the economy isn’t in too bad a place’ despite Brexit uncertainties
“Britain is on-track to beat last year’s record figure for startups,” he said. “There’s been no slowdown in business formation – entrepreneurs by their nature will rise to the challenge.”
It comes as retail giants including John Lewis have reported a slowdown in sales in the wake of the Brexit vote and have warned that retail prices could increase as businesses try to cope a weaker pound.
This has had a knock-on effect for some small businesses. Entrepreneur Aaron Jones, who set up his own fashion company in January, said “everyone’s got more risk averse” following June 23’s referendum.
His website See Fashion, which is an online marketplace that matches fashion designers with shops, counts major retailers including John Lewis as a customer.
“At first I thought the referendum wouldn’t be a problem, but in reality it’s slowed things in the short term,” said Mr Jones.
“People should remain calm, and keep on doing what they’re doing,” said Jemma Cooper, also a young entrepreneur who said the “Brexit effect” wouldn’t hurt her new beauty therapy business.
She isn’t worried for her Bournemouth-based company, JemmaCo Beautycare, which teaches massage and sells massage products. She set up the business last November after studying for a degree in complementary therapy in Wales.
“Local businesses are the way forward, and there will always be opportunities for start-ups,” said Ms Cooper, 27. “Every form of business is using tech, and the UK will be particularly good and adaptable at doing that.”
StartUp Britain is mid-way through its fifth national tour. It has been travelling through 30 towns and cities including Glasgow, Bournemouth and Birmingham on a Routemaster bus.
The tour, designed to raise awareness of entrepreneurship, started in the capital and gives lessons to budding entrepreneurs on how to find finance, build a team and export their goods and services outside Britain.