2020 Declared ‘Year Of The Start-Up’ Due To Record Levels Of UK Business Creation

by Liz Seyi Digital marketing manager

Last year may have been one of the toughest years UK business has seen in living memory, but it also saw the setting of an all-time record that should serve as an encouraging sign for the future of British entrepreneurship.

According to figures from digital payments specialist Tyl by Natwest, a whopping 770,000 new businesses were created in the UK during 2020, which represented a 30% rise on the number of business launches in 2019.

In fact, with the exception of April shortly after the commencement of the first nationwide lockdown, 50,000 new businesses were created every month in 2020.

The coronavirus pandemic forced ingenuity from British entrepreneurs

It appears from the data that aspiring small business owners weren’t overly deterred from making their dreams a reality during 2020, despite adverse circumstances including the enforced temporary closure of many high-street businesses and other restrictions aimed at minimising the spread of COVID-19.

One clear trend seems to have been a willingness by these entrepreneurs to tap into the opportunities afforded by digital, with online and mail order proving the most popular sector of creation last year.

The buying and selling of property was another big focus for new business owners in the UK in 2020, representing the third most popular source of new businesses created; 40% growth was recorded from the situation in 2019.

Meanwhile, there was also a 33% increase in the number of new takeaway shops in 2020, again compared to the previous year.

Women were particularly badly hit – but also fought back

Although this won’t be a revelation to many of those taking advantage of our accounting services in Plymouth and Wellington, the research findings also presented further evidence of women’s determination to strike out on their own in business, despite their jobs coming under particular threat during the pandemic.

While job losses since the onset of the COVID-19 crisis impacted on women 1.8 times more than men, female workers sought out alternative revenue sources, such as Etsy. Sure enough, 81% of sellers on the platform identify as women, and 69% of these regard their Etsy shop as a business.

There were 1.9 million people actively selling on the popular marketplace site in 2020, which was a million more than the year before.

“One of the great untold stories of the past year”

Tyl CEO Mike Elliff said of the findings: “Despite the many challenges faced by businesses, communities, and the world at large, the resilience and resourcefulness of Britain’s entrepreneurs is one of the great untold stories of the past year.

“The enterprising energy of new business owners deserves great credit. And while we all look forward to a world without lockdown restrictions, let’s hope the spirit of our agile, innovative and fearless start-up communities can endure long into the future.”

We can only express our strong backing for such sentiments here at TS Partners, as we continue to provide the specialised accounting services in Plymouth and Wellington that enable us to play our own part in supporting UK business growth. For help with the most efficient management of your organisation’s finances, please don’t hesitate to reach out to us.