Businesses started during the Covid pandemic could add £20.4bn to the UK economy as the number of start-ups during the pandemic grew.
About 800,000 companies were registered in the first year of the pandemic in the UK, 22 per cent more than the year before, a joint report by CBI Economics and NatWest showed.
80 per cent of businesses had no plans to wind down their business, with pandemic-started businesses also 20% more likely to use sustainable materials and suppliers.
“Pandemic-born businesses, led by ambitious, resilient entrepreneurs, have innovated in so many ways, and at such speed,” said CBI Director-General Tony Danker. “It’s crucial we give these leaders the support they need to grow and succeed.”
13 per cent of these businesses said regulation was a major challenge when starting their business, while access to finance was a key concern for with 55% of business leaders post-2020.
“A thriving economy is dependent on a flourishing entrepreneurial culture, “NatWest CEO Alison Rose said. “As we come out of the pandemic, despite rising inflation and the cost of living crisis, now is a great time to start a business and become an entrepreneur.”
“There’s more support than ever in terms of access to grants and funding, networking and mentoring and angel investment.”
The number of new businesses created as a share of total firms before the pandemic was 13%, higher than the US and Germany. In 2018, the one-year survival rate for new business was 89%, higher than the EU.
“Compared with its international peers, the UK is a proven hub for entrepreneurship,” the report said.