The number of new start up in 2011 will grow nearly 20 per cent more than in 2010 according to a business intelligence firm.
Despite the gloomy economic climate, Creditsafe says the number of new start ups in 2011 will be more than 470,000. That figure stands to be a seventeen per cent increase on 2010, which saw the introduction of 400,570 new SMEs.
London saw around 160,000 new SMEs registered, around a third of all SME’s registered this year. Birmingham and Manchester were also found to have the highest number of new registrations outside of London.
Business development director at Creditsafe David Knowles says there is cause to be optimistic despite a rise in insolvencies.
“This year has been difficult but the entrepreneurial spirit of the Great British public is alive and kicking. 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.”
At the National Freelancer Day in November, Prime Minister David Cameron lavished praise on the freelance sector and their positive effect on the economy. With such recognition, it would not be a surprise if more people decided to create their own companies and opted for a more flexible work life.