Record year for business in Lincolnshire, research shows
Lincolnshire has smashed the record for the number of new businesses launched in the area in a single year, according to new research.
Statistics compiled by company records management firm Inform Direct have revealed that 6,262 companies formed in 2014, up from a previous best of 5,531. This brings the total number of businesses operating in the region to a high of 37,990.
Henry Catchpole, CEO of Inform Direct, said: “This is clearly an area where fledgling firms are flourishing and where people are starting to make their dreams a reality in the word of business.”
Across the region, 1,435 companies were formed in North Kesteven, 863 in North East Lincolnshire and 805 in South Kesteven.
There were more companies formed in the county than nearby Northamptonshire, Cambridgeshire, Norfolk and East Yorkshire.
And, after taking account of companies dissolved in 2014, Lincolnshire saw impressive annual growth in companies based in the county of 7.1 per cent. Its five-year growth of 38 per cent was also well above the average for England.
Lincolnshire is clearly an area where fledgling firms are flourishing
Mr Catchpole said: “There is lots of support out there for fledgling businesses but in Lincolnshire the stats show that this support is translating into an impressive growth rate.
“This shows that the region has a good record for companies formed staying in business.”
Last year, in the UK as a whole, 586,784 new businesses were registered with Companies House taking the total number to a record high of 3,509,084. Private limited companies made up over 95 per cent of all formations.
And, while Britain has long been famed as an enterprising nation, the recent explosion in start-up activity has been exceptional.
Mr Catchpole suggests that there are three complementary factors fueling this growth. Firstly, there is the ease and speed with which a company can be started – usually within hours and generally for less than £20. Secondly, many companies can successfully operate from home and need little more than a website before they can start trading. Thirdly, there are improved channels for accessing capital. Crowdfunding is a good example of this, making it easier for new companies to get early stage backing and therefore encouraging would-be entrepreneurs to give it a go.