Get it now!
Creditsafe’s 2016 A Year in Review, a complete guide looking at company start-ups, closures, directors, CCJ's and much more. Download the full review for free here.
Research conducted for our ‘2016 A Year in Review’ found that start-ups dropped in 2016 compared to the previous year. Only 605,570 companies opened their doors compared to 610,589 in 2015. It is unknown whether the vote to leave the European union in July had any impact on potential directors’ decisions on opening their own company, however the result did send shock waves throughout Britain.
Although still higher than 2014, the amount of newly incorporated companies dropped 1% compared to the previous year. Quarter 2 saw the highest amount of start-ups and was the only quarter to have more newly incorporated businesses than the previous year. 165,402 companies were newly incorporated between April and June of 2016, and 156,537 in the same time period the previous year. Only a slight increase, but still better than the rest of the year.
East Anglia saw the highest amount of new businesses with over 73,000 companies developing in that region. London, the hub of British business, shockingly also saw a drop compared to the previous year with 3,000 less businesses being newly incorporated.
The South East also saw a significant drop of nearly 7,000 less businesses opening their doors in 2016 compared to 2015.
The biggest rise in start-ups was seen in the South West region, where 4,195 more companies were registered. This is good news for the South, which is currently beating the Northern Powerhouse for bringing new businesses to the British economy.
With Brexit on the horizon and uncertainty with funding for new businesses from the EU, the decrease in newly incorporated businesses could be set to continue. The economy had been recovering in previous years with start-ups on the rise, but 2016 could be seen as a step forward for British businesses.
A full report on the UK economy in 2016 can be found below.