PROSPECT of budget cuts have not deterred entrepreneurs this year with the number of start-ups in the UK growing at its fastest rate since 2007, according to the latest Simply Business start-up index released yesterday.
London experienced the fastest growth at seven per cent, substantially faster than the rest of the UK. The upswing is due to growth in the IT, management consultancy, financial, legal and advertising industries.
London saw particularly strong growth in property-related industries with architects and property service companies seeing a 77 per cent and 31 per cent increase respectively. These particular areas suffered falls across the rest of the country.
Small businesses are broadly in favour of government cuts. The Federation of Small Businesses has found that 78 per cent of its members are in favour.
While RSM Tenon’s entrepreneur opinion survey shows that a sizable minority of business owners are optimistic about the effect of cuts on their business – 11 per cent think they will have a positive impact, and a further 32 per cent are either unsure or believe that they will have no effect. Natalie Ellis, the entrepreneur behind Prestige Pet Products, said budget cuts will not kill a strong business idea.
Ellis said: “Now is a good time to bring products to market. Once the economy has turned around, businesses that have acted now could find themselves ahead of the competition. Not to mention, you are probably safer going it alone than leaving your fate in someone else’s hands at the moment.”