When the recession first hit, many business analysts thought that the company formation sector would be among the worse affected. However, recent reports have found that if anything, the recession actually acted as a stimulus to company formation.
Recent figures released from Companies House reveal that the number of company formations registered at Companies House have increased by ten per cent this year, compared to the same period last year.
While, in a context of restricted access to finance and difficult economic conditions, many people may be surprised to hear that company formation figures are actually up, some leading industry experts, such as Mark Whithill of business consultancy ‘White & Co’, actually expected the increase to be higher. He comments:
“The recession was full of surprises and the latest figures from Companies House just go to show that no expert can predict the tenacity of the UK’s entrepreneurial spirit”
Whithill also claims that the recent Emergency Budget, with its provisions to help encourage small businesses, will help increase recent company formation figures further.