UK entrepreneurship returns – increase in new business creation back to pre-pandemic level
The number of new businesses founded has grown for the first time since the pre-pandemic era, according to ECI Partners, the leading growth-focused mid-market private equity firm.
According to figures from the ONS, a total number of 401,435 new businesses were created in the UK in the past twelve months, up 5% from the 381,015 created in 2020/21. This is the fastest rate of growth for new business creation since before the pandemic, signalling a return in business confidence (see graph below).
UK entrepreneurs have shown their resilience during the past two years and the rise in business creation demonstrates the optimistic outlook for business growth in the UK.
Tom Wrenn, managing partner at ECI Partners, comments: “It’s fantastic to see that entrepreneurship is growing and there is a resurgence of new business creation after the past two years.
“Entrepreneurs are the backbone of the UK economy and integral to our growth, so it’s important that we continue to foster an environment which encourages innovation.”
New business creation in UK