Covid and Company Registrations - what does this mean for the future?
'The number of new company launches in the UK fell 25 per cent on average between January and May as COVID-19 swept through Britain. The biggest fall of 40 per cent was during the four weeks following lockdown on March 23, according to a new Economics Observatory report.
The figures are important because new businesses are the engine room of the economy, employing more young people whose job prospects have been worse hit by the virus.
Transportation and storage were the most badly affected sectors, with the number of new companies falling by over 50 per cent. Unsurprisingly, entrepreneurs didn’t think it was the best time to open a new restaurant either, as accommodation and food services registrations dropped over 40 per cent year on year.
The only business sector that saw an increase in new company registration was wholesale and retail trade, presumably as shops pivoted to selling local food produce as the nation hunkered down at home.
“New business creation is a key part of any economy, notably for generating new job opportunities,” said the report authors. “The sharp decline in start-up activity in the UK during lockdown is likely to have a strongly negative impact on aggregate employment in the future, regardless of the shape of the recovery.”'
Read the full article Here: https://smallbusiness.co.uk/new-company-launches-fell-by-a-quarter-between-january-and-may-2550820/