The number of companies formed in Britain in 2019 rose by nearly three per cent, hitting 681,704 according to research.
Over 45,000 tech start-ups were launched across the UK in 2019, representing 6.6 per cent of all company formations – the equivalent of more than five new tech start-ups launched every hour.
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Unsurprisingly, London had the highest number of new company formations with 221,373 companies registered, followed by second city Birmingham (14,509) and Manchester (9,064). However, Bournemouth and Poole – acknowledged to be the wealthiest places in England – were in sixth place trumping Liverpool and Edinburgh as entrepreneurial hotspots.
Top 10 cities for UK startups 2019
|Bournemouth and Poole||5,627|
Source: Centre for Entrepreneurs
Indeed, tech start-ups comprised 28 per cent of all new businesses launched in Bournemouth and Poole. Tech start-ups were also highly represented in Brighton and Hove (15 per cent), Winchester (12.8 per cent) and Cambridge (12.5 per cent).
The Centre of Entrepreneurs, which conducted the research based on Companies House data, also found some quirky businesses: 10 of the new businesses founded last year were raising llamas and alpacas, while 10 new wine producers were also registered.
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“It is encouraging that despite a politically turbulent year in which business confidence hit new lows, business formations continued to set records,” said Matt Smith, director of policy and research at the Centre for Entrepreneurs. “It suggests that entrepreneurial spirit is well and truly embedded across the UK with entrepreneurs continuing to turn their ideas into action.”
The North West was far more entrepreneurial than the rest of the Northern Powerhouse region, with strong company formation figures relative to company size in Cheshire East, Salford, Trafford and Stockport. Wales, Scotland, the North East, Yorkshire and the South West were the five least entrepreneurial nations and regions of the country.
Friederike Andres, lead researcher at the Centre for Entrepreneurs, added: “While the Northern Powerhouse has the opportunity to significantly boost entrepreneur-led growth across northern regions, the government must not forget the South West.”
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