Explosion in number of UK entrepreneurs
Micro firms maintain lowest insolvency rate
The number of small business entrepreneurs in the UK has increased by 117% in the last five years, fuelling a 41% increase in the total number of firms in the UK.
Business data collected by global information services company, Experian, has found that one or two man band businesses have managed to maintain the lowest insolvency rate over the last five years compared to other types of businesses.
Charlotte Hogg, managing director of Experian UK & Ireland, said: “Our analysis reveals that the UK’s smallest businesses have been surprisingly resilient during the economic downturn and have also seen their population skyrocket in the last five years.”
Hogg explained that the recession would have been an underlying factor in the increase of micro businesses. She said many start-ups were the result of changed circumstances where people found themselves unemployed, and needed to look for alternatives.
The analysis of over 4.3 million UK directors revealed that the increase in the number of entrepreneurs was spearheaded by young, male directors. However, there was also a significant rise in the amount of female entrepreneurs – up 72% over the last five years.
London has the highest concentration of one or two man businesses, currently 31,449, having seen a 105% growth in the last five years. This is followed by Birmingham, where there are, at present, 10,207 micro firms, a growth of 188%.
© Crimson Business Ltd. 2010