Turner Little reviews UK start-up survival rates that have climbed to a 3-year high, according to the bi-annual Barclays and Business Growth Fund Index.
Active companies
Established in 2012, the index is designed to measure entrepreneurial activity in the UK. The previous study showed that there were 3,139,630 active businesses operating in the UK in December 2014. The latest index suggested that this number rose to 3,260,879 in the sixth month of this year – the largest increase since the poll was first released in 2012.
Meanwhile, there were 193,699 company dissolutions in December 2014. This dropped to 170,359 by the end of the first half of 2015 – the first time this has occurred in three years. However the number of high growth businesses in the UK (companies with revenue of £2.5 million – £100 million) declined between the year to December 2013 and the year to the last month of 2014.
Business investment
Startups.co.uk reported that the research also showed that UK business investment levels rose in the twelve months to June 2015. The number of deals which
resulted in a minimum wealth creation of £200,000 hit 1,541 – a rise of 5% – within this time frame.
Broken down, these figures illustrate that the UK’s service industry was the primary driver of business investment growth. It accounted for 21% of investment deals in year to the sixth month of 2015. The financial services sector, meanwhile, accounted for 8.3%, whilst the computer software and industrial services/products sectors both comprised 7.2% of investment deals.
Allowing businesses to succeed
The head of wealth management at Barclays UK, Dena Brumpton, said: “The dip in the number of companies that are dissolving is testament to the growth in business confidence we have seen in recent years, allowing UK businesses not just to start up, but to succeed Since 2012, the appetite for creating new businesses has grown exponentially, due to a number of factors – from an improving economy to the rise of entrepreneurs over the age of 50 – the UK’s start-up scene is thriving.”
This research suggests that the UK’s current economic environment allows entrepreneurs to establish businesses that are sustainable long-term. If you wish to take advantage of this favourable climate, Turner Little provides the UK company formation services you need to establish a successful venture.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agents, Registered Bank Intermediaries and Business Consultants, as well as Trust providers.
