The number of startups in the UK is at a record high, at 608,100 in 2015. With an increase of 4.6% in compared to the 581,173 businesses formed in 2014, a report from Companies House Data stated.
The report was analysed by the Centre for Entrepreneurs (CFE), whose chairman, Luke Johnson, said: “We have seen a record number of new businesses created for four consecutive years, proving that entrepreneurship has become engrained within the UK’s business culture.”
Johnson called for the continued support of entrepreneurship by the UK by the government, and its promotion through “sensible and incentivising government policies”.
With such an increase in startups, we decided to take a look at why they’re more common than ever before.
Why are they so popular?
During the last ten years how we work has changed.
People are less prone to enjoy a good nine to five session in the office, with half an hour for lunch and a few tea breaks. Instead, more workers are favouring a Scandinavian approach to work ethic, where they’re free to work to their own schedule, and be more productive when they are working.
Unfortunately, British work culture is still catching up, meaning that becoming your own boss in order to tailor your work hours is a prevalent reason for creating a startup.
Another possible reason for the growth in startups is the rising number of university leavers who want to start their own business. An increase in university fees have left leavers more dedicated to their career and more likely to begin their own company.
And when those graduates look into starting their own business, they’re happy to find that it’s cheaper than ever before. Startup costs for becoming a sole trader are virtually non-existent, and inexpensive cloud software have made it possible for financial management to be practically pain-free.
What’s the future for startups?
Companies House Data’s report shows the future for startups is looking promising.
With the startup industry set to prosper, it’s probably the startup will become the face of entrepreneurship over the years – a truth already acknowledged with the creation of apps that have grown into multi-million businesses.
With a renewed focus on startups, more focus will be dedicated to their funding. While bootstrapping allows entrepreneurs to develop key skills that will aid them later in their career, it also restricts their growth – which can be the downfall for many startups.
A focus on funding will also allow startups to further the field of technology. It’s likely that more attention will be put on cloud networks and technology-focused startups, who will be at the forefront of successful startups.
The entrepreneurs who will conquer the future of startups will need to be technology savvy to be taken seriously. A startup without a Twitter account might as well wave goodbye to their business network, so keep ahead of the game!
Have you set up your own start up recently? We’d love to hear from you! Leave your comments in the section below.
