bizRichard

I’ve been away several weeks for a ‘well earned’ break but, back on the scene again, I’ve discovered, following on the theme of my last post “Hands up those who know the answer . . . . because I don’t!” that other people are equally puzzled about how things are panning out in the current economic conditions.

Why puzzled?  Because, the increase in ‘new business start-up’ numbers is defying the multitude ‘credit-crunch’ reports that have recently been forecasting doom and gloom for businesses in the months ahead.

The new research, from Barclays, suggests that ‘entrepreneurs’ are far from being discouraged by reports of an economic slowdown – there were an estimated 98,000 new start-ups formed in the first three months of 2008.

Although this number is not as high as the record-breaking business formation figures seen in 2006 and early 2007, the first quarter of 2008 shows the highest number of start-ups in the last three quarters.  It should be noted that the number of new businesses formed, and the number closed, was roughly the same in Q1 2008, but previous quarters saw much greater number of closures - in the last quarter of 2007, there were 86,4000 start-ups, and 111,900 closures for example.

According to the statistics, the most popular industries for start-ups were business and financial services (27,500 start-ups), construction (15,100) and the retail sector (10,700) – the later two clearly at odds with the reported downturn in construction and difficulties on the ‘high street’.

John Davis, Marketing Director for Local Business at Barclays, said: “Small business entrepreneurs are finding opportunities in the market place. They are entering in reduced numbers, reflecting an uncertainty over short-term economic prospects, but clearly there’s a feeling there is never a bad time to start a good business.

For those of you who like figures, the statistics for Start-ups and Closures over the past year 2007-8 are as follows:

The above figures are supported by another new survey, conducted by Deloittes, suggesting too that the UK’s entrepreneurs remain confident about business growth despite the current economic uncertainty.  Their survey, “Entrepreneurship UK: 2008″, offers an insight into the mindset of the country’s entrepreneurial business talent and suggests that entrepreneurs are actually bullish about their future with 45% predicting revenue growth in excess of 20% in the coming year.

So, optimism and opportunities for all. 

But with plenty of competition still entering the field, make sure you are always the best at what you do – that way, you build market share, while others lose it!   Seize the opportunity now, get out there - and get your share . . . and then make volumes more  money the SMART way

Richard C

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