Positive News for Business Survival

The Seventh Barclays and BGF Entrepreneurs Index examines the entrepreneurial landscape in the UK by looking at levels of activity occurring at different stages of the entrepreneurial lifecycle.

18/11/2015, news

The report analyses a number of datasets to provide a snapshot of entrepreneurship in the UK – from start-up, to growth, and the point of liquidity at which wealth is created.

The key findings of this seventh volume of the index found that:

  • Between December 2014 and June 2015 the number of active companies recorded by Companies House grew by 3.86%, from 3.139.630 to 3.260.879.
  • The proportion of high growth companies in the UK decreased by 0.7% percentage points, from 21.5% to 20.8% in the 12 months period between December 2013 and December 2014.
  • Between 2014 and 2015 the number of company dissolutions was lower than in the previous month six months. Overall there were 170,359 dissolutions compared to 193,699 between June and September 2014.
  • The research also indicates a healthy investment scene, with the number of deals resulting in wealth creation of at least £200,000 rising by 5 per cent in the 12 months to June 2015, to 1541.
  • The services (other) sector was responsible for by far the highest proportion of deals in the UK, at 21%. Following this were the financial services (8.3%), computer software (7.2%), and industrial products and services sector.
  • The proportion of high growth companies in the construction sector  has risen for the third consecutive year, from 22.6% to 24.9%

Dena Brumpton UK, Head of Wealth Management at Barclays says “The dip in the number of companies that are dissolving is testament to growth in business confidence we have seen in recent years, allowing UK businesses not just to start up, but to succeed”

“These results are particularly encouraging as the business landscape in the UK is changing, with a relatively small number of small and medium enterprises delivering a significant impact on economic growth, employment and wealth creation”

Brumpton adds that since 2012 the appetite for creating new businesses has grown exponentially, due to a number of factors, from an improving economy to the rise of entrepreneurs over the age 50.

Click here to view an infographic of the index and read more about enterpreneurial success

Source: Barclays and Smallbusiness.co.uk