the business ladder

A new report has claimed that 204,361 new businesses have opened over the first six months of 2010, helping to boost Britain’s recovery from the economic downturn.

The number of businesses opening hasn’t reached such highs in the UK in over a decade, perhaps growing as a result of reports in January that Britain has come out of the recession.

Yoodoo.biz is responsible for the findings, stating that the UK has seen a 51% growth, compared to the same period in 2008, in the number of new businesses, showing that perhaps the recession has encouraged many to turn to entrepreneurship in an economic environment where continued employment is uncertain.

The chief executive of Yoodoo.biz, Tony Heywood, stated: “The recession left many people out of work or unhappy in work and it is these people that are now using their own initiative to set up their business and help kick-start the economy again.

“Many of these people are not serial entrepreneurs; but instead are normal hard working people who have decided that they want to make a difference to their lives. It’s important that the government recognises the growing impetus around the country for people to try entrepreneurship for the first time.”

Heywood continued, saying: “The old adage that the majority of new businesses go bankrupt in their first year of trading is simply no longer true. The report confirms that the recession has created a new generation of kitchen table entrepreneurs who are setting up companies based on leaner business models, enabling them to adapt to realities of the new economy.”

The report backed this claim, asserting that businesses opened during the recession have a greater tenacity in hard economic conditions, with just 0.6% of the businesses opened in the 2009 period going into liquidation or administration, differing remarkably with the 4.5% of firms that failed between 2000 and 2008.

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