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Against the backdrop of continued economic uncertainty, 106 new businesses were created every hour across Britain in the first half of 2024, according to research by iwoca – one of Europe’s largest SME lenders.
Analysis of Companies House data reveals that over 459,000 businesses were registered in Britain between January and June 2024, an increase of 6% with 30,000 more companies created compared to the first half of 2023.
This comes as calls grow for the new Labour Government to deliver on its commitment to make the UK a healthy home for businesses to start and grow.
Wales challenges London dominance
iwoca’s Business Hotspots 2024 reveals London as the region with the highest rate of business creation in the first half of this year with 1,734 businesses created per 100,000 people––a 2% decrease since last year. Wales emerges as a surprise challenger, with 792 new businesses per 100,000, climbing from second-to-last in 2023 to second overall among Britain’s nations and regions.
Last year’s regional runner-up in new business creation per capita, the North West, drops to fourth place this year. Overtaken by Wales and the West Midlands (652), the North West saw 630 companies registered for every 100,000 residents.
England’s North East fell to the bottom of the list this year, with just 391 companies set up for every 100,000 residents. Last year, Scotland ranked lowest on the index, but with 26 fewer new businesses per capita at 365.
Camden tops the list of council areas
Camden saw the highest total number of businesses per capita out of all Britain’s local authorities, for the fourth year running. The London borough saw 11,565 new companies per 100,000 residents earlier this year, a decrease of over 2,000 compared to last year. The second largest number of firms per capita were registered in Westminster (6,889), followed by Islington (6,592).
Two local authorities outside of London feature in the top 10 of Business Hotspots 2024, Cardiff boasts 4,328 new businesses per 100,000 residents ranking seventh in Britain, and West Suffolk sits tenth with 1,563.
Trend towards self-employment
The high rate of business creation coincides with an increase in workers moving into self-employment, according to official statistics. Between January and June of this year, 395,000 employees moved into self-employment, an increase of 20,000 compared to the first half of 2023, and an increase of 60,000 compared to 2022.
ONS figures report 4.29 million self-employed workers in the UK as of September 2024.
Seema Desai, iwoca’s Chief Operating Officer said, “Our annual Business Hotspots research highlights the resilience of British businesses. Despite ongoing challenges such as inflation and the aftermath of Brexit and COVID-19, businesses across the UK are making a strong comeback and remain central to driving economic growth.”
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