Pandemic drives increase in new businesses
Research from fintech firm Tide shows that the pandemic has been the reason for 26% of new businesses opening this year, with the firm saying it has provided a “unique” opportunity for entrepreneurs as lockdown gave them the opportunity to rethink their careers and kickstart new projects. The study suggests that half of new businesses are full-time occupations rather than a side-hustle.
Tide found that more than two-thirds of new business owners are first-time entrepreneurs, while 9% of new businesses were opened as a result of a job loss and 3% were created due to furlough. On what the future holds, 65% of new business owners are confident their business will turn a profit in the coming year. Companies House data shows that there were 21.8% more businesses incorporated in the UK in the year to March 2021 than in the previous 12 months.