Number of New Businesses Hits Five Year High
Service businesses such as house and pet sitting experience surge, while traditional industries such as hair and beauty and florists rapidly decline
Research by Simply Business has revealed a five year high in the number of start-ups with a 24% increase in new companies launching within the UK, compared to 2013.
The report found that new service businesses, such as house sitting, facilities management and pet minding firms, are leading the market – experiencing an increase of 527%, 459% and 199% respectively.
This is a stark contrast compared to the performance of more traditional services, with start-ups in the hair and beauty, florist and event organising industries falling. The number of hair and beauty consultant firms witnessed the biggest decrease falling by 73%, followed by florist business at 62%, event organisers at 35% and childminders at 25%.
The research was based on data collected from over a million independent traders and start-ups between 2010 and 2014.
CEO of Simply Business, Jason Stockwood, commented on the research:
“It is encouraging to see the continued rise of start-ups and independent tradesmen over the past five years; however, the unfortunate decline in many traditional micro businesses and sole traders cannot be ignored.
“If we do not champion them, we risk losing more of our independent micro businesses which often lie at the heart of local communities. I hope the struggles faced by micro businesses and sole traders are addressed and we see a more flourishing forecast for our florists in the future.”