Jordans

DROP IN NUMBER OF UK COMPANIES BEING LAUNCHED

New enterprises down 16 per cent over the year to April, says Jordans

The number of new businesses created in Britain was 70,000 fewer this financial year than in the previous 12 months – a fall of 16 per cent.

Latest figures from corporate services company Jordans show that many of the major gains of 2006 have not been maintained.

They suggest that the slow down started around September and coincided with the first effects of the credit squeeze.

The North West of England experienced the largest percentage fall of 46 per cent year on year followed by the South East of England – outside Greater London – where the total was 26 per cent less. The drop also topped 20 per cent in Yorkshire and Humberside.

Other regions fared better but still saw a fall except for Scotland, where there was no change, and the North of England, where the number of new companies formed went up by 2 per cent.

Paul Townsend, Director of Jordans Corporate Services, said there was a mixed picture for 2007-08 compared to the almost universal rises of the previous year when a 20 per cent rise took the total to almost 470,000. Much of the increase that year was due to the change in the Government‘s tax treatment of managed service companies, many of whom formed private limited companies instead.

Paul Townsend said that although the latest total was down, there were still 374,021 new enterprises formed at an average of more than 31,000 every month.

“It is interesting that when the figures are broken down they show that in most areas there was no major difference between the monthly average of companies formed in the first nine months of the year, and the average in the last quarter, when we were being bombarded by negative data and comment,” he said.

“However, the trend in average monthly formations has been downwards, flattening out in the last quarter.

“There is obviously more caution amongst entrepreneurs but at this stage there are still considerable numbers of people willing to take a chance and form their own company.”

ENDS 23rd June 2008

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk