Old boots for new shoots

21st February, 2012

We note the encouraging statistics of an increase in business start-ups in 2011, according to analysis by business insurance specialist, Simply Business, and nicely summarised in their infographic reproduced below.

We shouldn’t try to project any great economic recovery from such figures, especially as we know that a reasonable proportion of new businesses will fall over in the first year (a failure rate of anywhere between 40% and 90%, depending which blog you read.)  But it does suggest that in the absence – or certainly with the decreased availability – of ‘safe’ and rewarding employment, many are choosing to put their future prospects in their own hands.

If the rate of business start-ups was an indicator of a national economic recovery then maybe we could expect a uniform show.  Instead we see greatest increases in the regions of East Anglia, the South West and Northern Ireland.  And most interestingly, among the over 65s (up by nearly 19%!), although the survey reports the 25-34 year olds as being the most entrepreneurial age with over a third of all start-ups from this age group.

Every large business was once a small business and although these start-ups may not be making a huge impact on national GDP for some time, these are the real  green shoots of recovery.

Simply Business Startup Index

Source: Simply Business