Surge in start-ups
The surge in start-ups is defying the economic gloom.
According the Sunday Times, although the number of company formations in Birmingham, Manchester, Leeds and Bristol increased last year, London is still by far the most popular place to form a business.
In 2018, the number of startups increased by over 5% to 645,775 which is an annual record. When the number of startups are adjusted to take into account multiple companies started by formation agents from the same location, and contractor accounting firms formed by freelance workers to reduce their tax bills, the true increase in startup is probably slightly lower at about 4.7%.
“These figures demonstrate the resilience and confidence of entrepreneurs,” said Matt Smith, the Centre for Entrepreneurs (CFE) think tank director. “The achievement is especially noteworthy as contractor accounting firms … seem to have been replace by genuine local business activity”.
However, some areas, such as Birmingham, have seen Start-ups rise by nearly 10% after adjustments. “There’s a huge confidence in the city” said Neil Rami, chief executive of the West Midlands Growth Company, a regional development agency. ” London has become quite difficult in terms of housing costs and office space and cost of living. You can come to Birmingham and live a pleasant life.”
