UK has three million active businesses despite economic instability
There are now three million active businesses in the UK, the latest Entrepreneurs Index from Barclays and BGF has revealed.
That is despite a “dangerous backdrop of instability,” as identified by Prime Minister David Cameron at the G20 Summit.
UK entrepreneurs are growing
The Index found that the number of active companies increased by 3.9% in the first six months of 2014 while there is also a high proportion of early-stage entrepreneurs in the UK.
More than 7% of 18 to 24-year-olds are in the process of starting or are already running new businesses, a significant increase from at the height of the economic crisis when the figure was just 5.5%.
The findings suggest that many people are prepared to start new business despite economic conditions not being entirely suited to doing so.
Entrepreneurs are seizing their opportunity but they still need to proceed with caution, especially in the early days when finances might not necessarily be available. Wrong decisions could result in the end of an idea before it even gets off the starting block while small businesses may wish to seek insolvency advice should they find themselves in difficulty.
Exercising caution with business activities
In some sectors, the economy has boosted investment as conditions allow for firms to purchases items that may not have been possible several years ago but any investment decision in the run up to Christmas will come against a backdrop of government warnings, including one from the Prime Minister.
He has suggested that the global economic outlook could impact the UK economy, saying that “red warning lights are once again flashing”.
The Eurozone is facing tougher times too – Italy has entered recession while Germany only narrowly avoided one. This is all happening while emerging market growth has started to slow.
Despite the global situation being less than favourable in some respects, UK businesses remain in a relatively secure position thanks to the growth noted in the past year.
However, most will need to keep a watchful eye on the current situation and should not be afraid to act if they believe they may face financial difficulties.
By Phil Smith