UK enterprise booming as business population hits record 2.1 million
Number of businesses in the UK per capita nearly back to its pre-crash peak of 32.8 businesses per 1,000 of the population
Entrepreneurship in the UK is thriving as the country’s business population reaches an “all-time high” of 2.1 million – up 4% from two million last year – according to UHY Hacker Young.
The research also found that the number of businesses in the UK per capita has grown to 32.7 businesses per 1,000 of the population – nearly equivalent to its pre-recession level of 32.8 businesses.
The study suggests that millenials in their 20s and 30s are one of the key drivers behind the UK’s booming start-up economy – last year it was revealed that there were 26,420 companies in the UK with a director aged 21 or under.
Another reason for the increase in enterprise is thought to be the ease of doing business in the UK: out of 189 countries, the UK is ranked sixth by the World Bank, for enabling entrepreneurs to incorporate companies in 24 hours and for having the lowest corporate tax rate in the G20.
UK businesses also benefit from a range of grants, loans and entrepreneurial tax relief offered by the government.
Marc Waterman, partner at UHY Hacker Young, commented: “The UK’s thriving start-up economy has driven the number of businesses to its highest ever level. The recession showed that working for big business is no longer a guarantee of job security.
“In this environment, the UK government is aware that a large proportion of millennials want to start their own businesses, and has put a range of schemes in place to support new companies. This has given young people the confidence to strike out on their own.”