There’s been a massive surge in the number of entrepreneurs who have set up limited companies in the last five years, according to Experian.
Since 2005, the total number of UK companies has increased by 41%, a jump contributed mainly to a 117% leap in the number of entrepreneurs.
A new report from the firm also reveals that these new businesses have the lowest rate of insolvency and the second healthiest financial strength score when compared to other businesses.
Experian analysed their business database and discovered a massive jump in the number of male entrepreneurs linked to one and two man firms. This trend was spearheaded by younger male directors, with the under 24 age bracket showing an increase of 62% whilst those aged between 25 and 29 jumped 54%.
There was a 72% increase in the number of female entrepreneurs over the five year period, but unlike their male counterparts, this was fuelled by women aged 60 or over.
The largest sector increase (181%) came in business management and consultancy and accounted for 5% of all one and two person businesses.
Darren Hopper from Orange said that many people are leaving regular employment to set up their own business or work as freelancers and their primary focus is on innovation. Existing SMEs are also exploring new business ideas to keep themselves afloat during these turbulent economic times.
This entrepreneurial trend is likely to continue according to Hiscox, the insurance firm, who reported last month that 33% of graduates intend to set up their own business due to the current state of the jobs market.
Entrepreneurs could start to find it easier to obtain finance soon as the government’s business minister Mark Prisk has been meeting with finance experts to discuss the lack of available credit to small businesses.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Catskills acorns by Saucy Salad
