By Maximilian Clarke
There will be an estimated 18% increase in the number of new business start-ups by the end of 2011, research suggests, at the same time as insolvencies are forecast to grow 4%.
New analysis from Creditsafe, business intelligence, predicts that over 470,000 new businesses will be established by the end of the year.
“This year has been difficult but the entrepreneurial spirit of the Great British public is alive-and-kicking,” David Knowles, Business Development Director at Creditsafe. “While there has been a higher number of business insolvencies this year, the number of new businesses set up over the last two years has also grown steadily. Overall, growth in the UK business population has actually accelerated in 2011.
The Lion’s share of new businesses were launched in London- which accounted for more than a third of the UK total. This is also reflected in demand for commercial space in London in the last quarter which was strong enough to prevent construction decline.
“We are also able to confirm that Birmingham is indeed the ‘second city’ of the UK, comprehensively beating Manchester in the start-up stakes. By the end of the year, we expect over 14,000 new business start-ups Birmingham, 4,000 more than nearest rival Manchester.
“And it’s perhaps no coincidence that Yorkshire & Humber and the North West — which have seen the biggest public sector job cuts — have also seen significant rises in start-ups. This could suggest that those made redundant in the public sector are starting new ventures in the private sector.”
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