UK welcomed 726,000 new businesses in 2020, up 14% from 2019

Close to 726,000 new businesses were created in the UK in 2020, compared with just over 636,000 in 2019.

The creation of over 700,000 businesses in 2020 has placed the UK fifth among 22 countries studied by UHY Hacker Young in its annual business creation ranking.

March 2021 was a particularly busy time for the launch of new ventures, with more businesses established in that month than in any other since HMRC began keeping records of business creation in 1989.

The establishment of 725,882 UK start-ups in 2020 represents an increase of 14 per cent for the nation – more than double the global average of 6 per cent.

Online retail drove much of the growth, with an average of 4,613 new retail businesses per month launching on virtual platforms beginning in the second quarter of 2020, which coincides with the peak of the country’s first COVID lockdown. This figure was up 66 per cent from 2019, which saw an average of 2,783 online businesses created each month in the UK.

A spike in entrepreneurship has driven business creation, which UHY credits to the furlough scheme and people being forced out of work due to lockdown restrictions.

Source: Financial Accountant click here to read more.