• Immediate Working Capital
  • Growth, Aquisitions, MBOs
  • No Need for Re-negotiation
  • Instant Cash Flow
  • Saves Management Time
  • Improved Collections Performance
  • Recession-Proof Thinking
  • Practical How To Guides
  • Business Knowledge Bank
  • Fast Track Response
  • Competitive Rates
  • Personal Service

Number of new companies on the rise

Date Added: Fri July 30 2010
The number of new companies has started to rise again following two years of steep falls caused by the banking crisis, says Wilkins Kennedy, the Top 25 accountants.

According to Wilkins Kennedy, the number of new companies registered with Companies House surged by 10% to 362,300 in 2009/10, up from 330,100 in 2008/9.

In the previous two years, which were scarred by the worst recession seen for a generation, company incorporation's saw record falls of 17% to 372,000 in 2007/8, followed by a drop of 11% to 330,000 in 2008/9.

Comments Roger Williams, Partner at Wilkins Kennedy: “These figures show how quickly the small business sector has been able to get back on its feet despite being hit particularly hard by the recession. This economic crisis has caused a slump in new start-ups that was more than twice as severe as in the 1990/91 downturn. Hundreds of thousands of people have lost their jobs since the banking crisis started but what we are now seeing is that many of those have dusted themselves down and are starting up their own business.”

“Starting a new company is never easy and most people who have spent their working lives as employees put a lot on the line by going it alone – for example they may need to use their house as security for loans.”

Roger Williams comments that with lending by banks to UK businesses continuing to fall, the shortage of finance will be one of the biggest challenges this new class of businesses will face.

Comments Roger Williams: “This new wave of small businesses are going to watch the new Government very closely to see whether it can give them the practical support that the Governments always seem to promise but that SMEs say never seems to arrive.”