More than £20 billion could be added to the UK economy in the future from the
number of additional businesses created during the pandemic, according to
research carried out by the Confederation of British Industry (CBI).
Around 800,000 companies were registered in the first year of the pandemic, a 22%
increase compared with the previous year. Only 13% of these start-ups cited
regulation as a challenge when starting their business.
However, access to finance was a key concern for many burgeoning business
leaders, with 55% highlighting this post-2020, compared with 42% pre-Covid.
The research also found that businesses born during the pandemic are 20% more
likely to embrace sustainability than firms established prior to 2020.
Tony Danker, Director General of the CBI, said:
'Pandemic-born businesses – led by ambitious, resilient entrepreneurs – have
innovated in so many ways, and at such speed, giving me great sense of
optimism. It's crucial we give these leaders the support they need to grow
and succeed.
'Rising energy prices, supply chain challenges, an uncertain economic outlook
and cost-of-living crisis mean we've some testing months, and possibly
years, ahead. For start-ups which count their experience in months, not
years, that environment is even tougher.
'That said, even if the cost of doing business is rising, the cost of
starting a business shouldn't. The UK needs the ideas and ingenuity of
entrepreneurs to help us grow.'
Internet link: CBI website