Business start-ups were at their highest levels for 20 years in 2007. However, the slowing economy meant that the number of businesses closing also surged during the year.
A record 471,500 new businesses started up in 2007 - the highest annual volume since Barclays started tracking the market in 1988. The figures show an increase of 17% on the figures first recorded in 1988 (403,200), and an increase of 3% on 2006 (457,200).
- The business stock reached 2.93 million in 2007, the equivalent of one firm per 8.7 people of working age, an increase of 15% over the last 20 years.
- More than seven million businesses have started in the last twenty years whilst a similar number have closed.
The closure rate of the business stock has averaged 14%. The closure rate was at its peak in the 1991-92 recession, reaching 18% in 1992. It dropped as low as 11% in 2003 on the back of strong economic performance. It reached 17% in 2007.
The recent stalling in confidence will no doubt skew the figures for 2008. Much of that was misplaced initially but becomes self propagating so easily.
Bob Shepherd Associates can help make your business more efficient and will gladly help develop it. If you give in to a crisis of confidence yourself however there may be nothing anyone can do.
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