New business start-up figures unaffected by credit crunch

Written by Stephen
Sunday, 31 August 2008
A recent survey reveals that more people are starting a business to strengthen their financial security despite the current economic climate. The research was carried out by business consultants www.getsetforbusiness.com who surveyed businesses established for less than six months on their motivations for becoming self employed. Over 40% of respondents indicated their main reason was the fear of redundancy from employment and the subsequent removal of financial security. Over 200 business owners were questioned and other motivations included the flexibility of working from home and not having to answer to bosses. Recent figures released by Companies House and the British Banking Association show further signs of business confidence. Over 27,000 new Limited Companies were incorporated in England and Wales in July 2008. In addition, the latest figures (Q3 2007) for the leading high street banks providing small business services show that: • Overdraft borrowing is £9.0 billion, a fall of one per cent over the year, reflecting a lower reliance on temporary, cash flow finance. • Term lending stands at £39.9 billion, having grown nine per cent over the 12 months to September. • Deposits total £48.8 billion, having increased by eight per cent over the 12 months to September. • Over 585,000 small businesses established new banking relationships in the latest 12 months. GetSet for Business has actually seen a 20% rise in the number of businesses seeking support in the last six months compared to the same period last year.
Last Updated ( Sunday, 31 August 2008 )