Start-ups flourish in Liverpool

START-up rates in Liverpool hit a record high in April, according company formations agent Duport.co.uk.

Its analysis of Companies House data showed that 337 new businesses were formed last month, which is an 11% increase on the previous record for the city at the height of the boom back in 2007.

Peter Valaitis, managing director of Duport, said: “It’s astounding that Liverpool’s entrepreneurs are breaking records in the middle of a recession, but it’s the start-up companies and small businesses that are going to get Britain back on the road to recovery.

“Clearly, Liverpool is at the forefront of the charge.”

Duport argued that companies in the area had benefited from extra financial support from Community Development Finance Institutions (CDFIs), distributed through the Merseyside Special Investment Fund (MSIF).

CDFIs offer loans to start-ups deemed to have good growth potential but can’t get the funding they need from banks or building societies.

MSIF’s Chris Walters said: “While we acknowledge it is harder than it used to be for all businesses to access funding, the challenge for start-ups is greater than ever. The absence of any track record means they are often considered high risk,
and therefore most in need of a shared vision and support.

“Of course, our aim remains to make considered investments which will create growth and leave a positive legacy for the local economy.”

MSIF has invested £2m in 70 businesses through the scheme to date.