Highest number of new businesses registered on record

Despite economic uncertainty, there were 810,316 company incorporations in 2020/21 – an increase of 59% on the previous financial year and the highest number on record in the UK.

Data from The Instant Group shows that an average of 1,781 companies have been registered in the UK per day since the start of 2021.

The most companies registered in 2021 so far have been in London, Birmingham, and Manchester.

The growth in start-ups has fuelled an increase in demand for flexible workspace across the UK’s cities according to The Instant Group, with large proportional increases outside London.

Requirements for coworking and serviced offices has grown significantly in cities such as Bristol (41%), Manchester (28%), and Reading (27%) over the past year.

Entrepreneurial growth via start-ups played a pivotal role in driving the growth of coworking following 2008’s global financial crisis, with supply increasing year on year by 25% over the following decade. Instant expect this new wave of entrepreneurial activity to be one pillar that supports the next wave of growth within the flexible workspace market.

John Williams, Director of Instant, said: ‘As we saw after the 2008 financial crisis, the immediate effects of a recession can be severe with mass job losses and huge financial implications for individuals and businesses alike. But even before COVID-19, redundancy and unemployment were driving high levels of entrepreneurship in the UK.

‘Small and medium sized businesses are the backbone of the UK’s economy and there is no denying that the COVID-19 pandemic took its toll on everyone in the business sector in one way or another. But entrepreneurs and smaller businesses, by their nature, are far more flexible and able to adapt easily and this makes them more resilient and able to recover far more quickly.

‘It’s really encouraging that we are seeing so many new businesses being registered. Creating opportunities for these organisations to thrive is essential for increasing productivity, creating jobs and boosting our economy.

‘Flexible workspace such as coworking is already back at pre-Pandemic levels of occupancy as SMEs drive requirements across the UK’s cities. Coworking thrived after the last recession in 2008 as start-ups flourished.’

Photo by Charles Deluvio