Covid corporations – 1.43m businesses were founded during the pandemic
While the Covid-19 pandemic had the world at a standstill, it did not halt the UK’s entrepreneurial spirit. Charles Stanley’s Opportunities in Adversity report reveals that 1.43m businesses were established between March 2020 and January 2022 in the UK. This is more than double the number of companies incorporated during the Global Financial Crisis (Q4 2007 – Q2 2009).
These businesses hired more than 2.7m staff, with a £440b total turnover. UK businesses founded between March 2020 and January 2022 participated in 6.15k fundraising deals, raising £14.0b in equity investment and have collectively generated a turnover of £440b. Top fundraising deals include London-based pet insurance provider Many Pets, which raised £300m between March 2021 and January 2022.
In fact, Covid seemed to give entrepreneurs the push they needed. In a survey of British business owners with businesses which started post March 2020, 35% of owners got the confidence to set-up their firm during the pandemic. One in three (33%) took advantage of the time given back to them due to socialising restrictions while 19% made use of the increased financing made available to start their business. 27% rose to the challenge and saw a market opportunity directly due to Covid. Only a fifth (22%) of businesses started since Covid were unrelated to the pandemic.
The majority of long-standing business owners were also undeterred by the pandemic. Only 42% of those who operated before and through Covid were stressed about their business as a result of it. More businesses also came out stronger (32%) than almost didn’t make it (20%). Covid also had other positive impacts, as 41% got to spend more time with family and 29% had more time to spend on their business too.
Louis Coke, director of Private Clients at Charles Stanley comments: “The pandemic sent shockwaves around the globe, but British business owners proved their resilience during these challenging times, innovating and levelling up their ventures to brave the storm that was Covid-19. While many grasped the opportunity in adversity, navigating the constantly evolving landscape of this time did not come without its own challenges and tribulations.
“We are committed to supporting business owners through times of difficulty. Whether in the form of an investment strategy or as a guide through significant financial planning like inheritance, we champion financial security for entrepreneurs so they have the confidence to bolster the British economy with their businesses.”
