New figures published by the Centre for Entrepreneurs (CFE), the UK’s leading entrepreneurship think tank researching the economic and social value created by entrepreneurs, show the number of startups launched in 2017 dwindled by 10 per cent.
Just over 589,008 new businesses started up in 2017, compared with 657,790 the previous year, data from Companies House shows.
According to CFE, this first drop in startup numbers since 2010 can be partly attributed to the government’s clampdown on ‘contractor accounting firms’, which came into effect in April 2017.
The combination of regulatory burdens and business rates rises also had an effect on the number of businesses setting up in 2017, whilst Brexit did not seem to have much impact on numbers, the report indicates.
Matt Smith, the director of the CFE, says: “With business registrations increasing for nearly a decade it is not surprising to see the record streak come to an end.
“While the tax clampdown is responsible for most of the drop, there is evidence that formations have fallen more than expected.
“To boost startup figures, the government must return to championing entrepreneurship and supporting entrepreneurs.”
Beavis Morgan – Advisers to UK startups
Our startup business experts at Beavis Morgan work with many entrepreneurial businesses across a broad range of sectors, helping them set up and run their own businesses and guiding them through each stage of the process, whilst navigating the challenges and advising them in making the right decisions both now and for the future.
We also understand that whether you’re a startup or a well-established business, cash is king and managing its flow is crucial to your immediate and long-term success. That’s why our independent finance brokerage, BM Structured Finance, is readily available to assist startups source the right funding for their individual needs.
What’s more, the government’s Research & Development (R&D) tax credit scheme is essential in encouraging innovation and increased spending on research and development activities by companies operating in the UK.
If you would like to know more about how we can help you and your business, or to find out how we can assist in maximising the value of any potential R&D claim and manage the often-complex process on your behalf, contact Steve Govey or your usual Beavis Morgan Partner.