London named most entrepreneurial place in the UK
A new study has revealed that London has seen the most Private Limited Companies founded in the UK, throughout 2020 and 2021.
Research by accountancy firm Raw Accounting analysed official Companies House data from both 2020 and 2021, to discover the most entrepreneurial city or town in the UK when it comes to founding new businesses.
London placed first in the results, with 323,407 new Private Limited Companies incorporated altogether over the two years.
In second place was Manchester, with 27,060 – a total of 296,347 less than London.
There were an overall number of 1,288,258 Private Limited Companies incorporated throughout the UK in 2020 and 2021.
The top 10 most entrepreneurial cities in the UK were found to be the following:
(The table shows location + number of private limited companies incorporated between 2020 & 2021)
1. London – 323,407
2. Manchester – 27,060
3. Birmingham – 26,394
4. Glasgow – 16,551
5. Leeds – 13,865
6. Liverpool – 12,737
7. Bristol – 12,539
8. Leicester – 12,036
9. Nottingham – 10,667
10 . Sheffield – 8,505
Data finds a 29.26% increase in new businesses between 2020 and 2021
In the UK between the years 2020 and 2021, there was an increase in the number of Private Limited Companies founded by 29.26%.
Companies House data analysed by Raw Accounting found there to be 561,924 Private Limited Companies founded in 2020, and 726,334 in 2021.
Luke Fletcher, founder of Raw Accounting said:
“It’s hardly surprising that company formations were higher in 2021 than 2020. Those with plans to set up a company in 2020 may have applied the brakes, as we all tried to work out what the pandemic meant for business.
What’s more surprising is the rapid resurgence in 2021, when formations exceeded even pre-pandemic levels.
My view? This was both the result of pent-up demand from 2020 and also an acceptance of the new norm – with businesses capable of being run from the kitchen table many potential founders were left thinking, ‘if not now then when?’”
Growth looks to be slowing in 2022…
The data also shows that this growth seems to have slowed down so far in 2022. Both January and February have remained relatively flat.
In January 2022 there were 61,916 Private Limited Companies registered vs 59,585 in January 2021, a growth of only 3.94% year-on-year.
February sees this growth slow down even more, with 63,353 being incorporated in 2022, and 63,540 in February 2021 (-0.29%).
