Recession Spawns 1000 New Businesses Every Day

Over the past 12 months over 395,000 new businesses have been registered at Companies House: only 2006/07 saw more company births. But that was at the height of a boom, not the depths of a recession, and there are big question marks over the level of support that these new ventures will receive as the new government threatens to abolish the Business Link network.

Commentators suspect that the boom in business creation is fuelled by redundancy payments and the growth of the internet and faster broadband speeds allowing entrepreneurs to take advantage of e-commerce opportunities that require much smaller up-front investment.

But setting up a company is relatively easy; keeping it going beyond the critical three year period is less so. As the new government continues to feed speculation about the deconstruction of publicly funded business support, doubts increase about the level of support that fledgling businesses can expect from the State increase.

What scant information exists suggests that local delivery of pre-start support will be provided by the new Local Enterprise Partnerships [LEPs], but LEPs are probably between one and two years away from being established and most new companies hit problems in the first six months.

Source – http://brightonbusiness.co.uk

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