Young entrepreneurs eagerly setting up new businesses

Thursday 2 May 2013

The economic downturn witnessed since 2008 does not appear to have dissuaded young people from setting up their own businesses.

According to the annual Simply Business Start-up Index, there has been a 29 per cent rise in the number of firms started by 18-25 year olds over the last five years.

The insurance provider found that new businesses accounted for 38 per cent of all quote applications in 2012, representing a 3.4 per cent rise on the previous year.

This compared to a decline of 8.7 per cent for all start-ups since 2008 - making the increase in younger entrepreneurs all the more significant.

Seemingly university graduates and other young people are choosing to start their own companies rather than enter the UK's ultra-competitive jobs market.

With some job adverts receiving hundreds of applications, many educated people in their 20's have encountered barriers to employment over the past few years.

And for those with an idea for an enterprise of their own, this had added extra impetus to set up in business, despite their tender age.

“The start-up figures for 2012 are encouraging as they show that enterprise is not being unduly suppressed by ongoing negativity in the economy," said Jason Stockwood, chief executive at Simply Business.

“This has been among the most difficult periods ever faced for young people, with many traditional routes to employment now closed, so it is especially pleasing to see a new generation of entrepreneurs emerging and hopefully building the household names of the future."

According to Companies House, there were 3,044,768 registered firms at the end of Q1 2013, of which 2,777,995 were on the Active Register.

There were 45,137 incorporations during March 2013, as well as 23,933 dissolutions.

Some 99.1 per cent of accounts were up to date in filing, while 81.3 per cent of accepted documents were filed electronically.

To find out how Microsoft solutions can assist with starting up in business, click here.

Posted by Jenny Arthur