The number of new businesses being created in the UK jumped by 18 per cent year-on-year, according to research.
Despite the economic backdrop, 93 new businesses were created every hour across the UK in the first half of 2022, according to small business lender iwoca.
Analysis of Companies House data revealed that over 402,000 businesses were registered in the UK between January and June 2022. London saw the highest business creation rate per capita with 1,587 new businesses per 100,000 residents, followed by the West Midlands with 571.
Yorkshire and Humber saw the highest percentage increase year-on-year with a 41 per cent rise. This was followed by the East Midlands and Wales which both saw a 24 per cent uplift over the same period.
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The analysis also revealed significant growth in the number of new businesses outside of the main cities. The Isle of Wight saw the highest percentage increase year-on-year with a 125 per cent increase, followed by Blackpool (98 per cent) and Oldham (87 per cent).
The rise in new businesses reflects the increase in the number of people changing roles within the UK, which increased to a record high of 997,000 during the first quarter.
ONS data records that a large proportion of these moves were driven by resignations – far more than by redundancies – suggesting that some workers may be taking the initiative to quit their jobs and set up a business.
Seema Desai, iwoca’s chief operating officer said: “Despite the prevailing headwinds of an impending recession, we are encouraged to see that so many businesses have been created during the first half of this year.”