2020 is about to be a report 12 months for newly based corporations

Keep company: 59,000 additional companies were registered between June and August

A record number of companies should be launched this year. In 2020, a further 84,758 companies were founded compared to 2019.

This corresponds to an increase of 12.3 percent compared to the previous year. This is the highest percentage growth since 2011 and the highest actual growth in history.

A further 59,358 new companies were founded between June and August, according to research at Companies House.

> See also: How to become a sole proprietorship

The fastest growing sectors included e-commerce (up 88 percent from 12,490 new business registered), apparel (up 55 percent) and, unsurprisingly, medical device retailers (up 176 percent).

While SHL research may seem good news at first glance, the reality is that many new businesses are being started by those who have lost their jobs due to Covid-19.

Instead of creating jobs, 77 percent of Britain’s 6 million small businesses are sole proprietorships, leaving others with little job opportunity.

> See also: Registering a Company Name – A Small Business Guide

And there’s also a question mark as to how many of the 59,538 companies launched between June and August are even legitimate, given the widespread fraud committed with criminals targeting the bounce-back loan program that limited liability companies have Offers up to £ 50,000 interest -free for one year.

The business areas in which the number of start-ups declined the most included veterinarians (minus 48 percent compared to the previous year), IT consulting (minus 25 percent), opticians (minus 33 percent) and, again, unsurprisingly, aircraft repair / maintenance (minus ). down by 44 percent).

Recruiting and training company SHL analyzed data for 6.1 million companies formed in the UK over the past decade.

However, Iain Wright, director of business and industrial strategy at the Institute of Chartered Accountants in England and Wales, told the Times, “Every downturn in economic history comes with a surge in entrepreneurship. This could be the start of new, innovative companies. “

further reading

5 best ideas to start a small business after coronavirus

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