Start-ups increasing as SMEs weather storm
THE SME market is better financially prepared to weather the economic downturn – with the number of start-ups set to pick up by the end of the year according to new research.
Figures from Barclays reveal that start-up growth in York and Harrogate growth remains strong although Leeds and Bradford has seen a decline in year on year figures.
The decline in start up business numbers is expected to be over by the end of the year – with around 380,000 businesses expected to start up this year – compared to 430,000 the previous year.
In Yorkshire the figures estimate that 32,400 businesses will start up during 2008 compared to 31,900 started in 2007.
Amanda Shepherd, regional director for Barclays Local Business in Yorkshire said: “We believe most of the downward adjustment will have occurred by the end of the year, and a lot of the fall has already occurred. Business closures are also past their peak and are likely to level off shortly. While we expect some further decline in the stock of firms into 2009, by early 2010 we could be seeing the first real signs of a pickup in SME numbers.
“The spectre of 1993 – when we last saw a recession – is often invoked, but today matters are fundamentally different. Small businesses have kept their borrowing in line with their assets, rather than borrowed excessively. These are savvy businesses which have been prudent with their finances. Likewise, Barclays has not changed its criteria for small business loans – we are definitely open for business.”
Doncaster and Hull also saw a slight increase in the number of businesses starting up in the first half year compared to 2007, whilst Leeds and Bradford weathered the economic downturn less well with a decrease of 800 and 200 business starts ups respectively for the first half year.
Ms Shepherd added: “These are challenging times, and advice and support through programmes like our Barclays Let’s Talk seminars can make all the difference – before, during and after start up.”
