The number of new start-ups being founded per year has increased to nearly 420,000 according to the Office for National Statistics (ONS).
Between 2010 and 2016 there was a 78% increase in new business formation from Britain’s entrepreneurs, though the impact of Brexit has yet to be fully-assessed.
New research commissioned by wealth manager Kleinwort Hambros by the Centre for Economics and Business Research (Cebr) found that the birth rate and survival rate — the number of businesses still in operation after one year — both improved dramatically during the same period.
The research found that start-ups in professional, scientific, and technical businesses have the best survival rate of any sectors, with 95% of businesses founded in 2014 still in operation in 2015, the last year for which that data is available.
“The financial crisis has given way to a more benign macroeconomic climate and an increase in consumer spending and business investment,” said Paul Bentley, head of entrepreneurs at Kleinwort Hambros.
“We also saw interest rates cut to record lows which has decreased the cost of borrow helping to boost credit lines for the private sector.”