2020 saw a record number of start-up businesses
The Covid-19 pandemic has introduced a new era of opportunities for small businesses. Despite various lockdowns and uncertain economic conditions, the UK has seen a record number of new start-ups.
Over the course of the last year, the world has experienced a ‘start-up boom’—the highest growth since 2011. The pandemic may have seen many thousands of jobs lost; however, the creation of new businesses in this country has exploded.
The effect of Covid-19 has been felt by almost every company and worker. During the first lockdown, many businesses, restaurants, and shops were closed; every region recorded exponential job losses. In the early days of the pandemic, more than 810,000 jobs disappeared, including 171,000 in shops and 355,000 in restaurants, shops, and pubs. More than half of those made redundant were aged 16-25.
The economy shrinking looks to have inspired people to launch their own enterprises and take control of their income. A study suggests that these new businesses were predominantly created by people who had lost their jobs because of Covid.
Though it fell sharply at the start of the pandemic, the UK market stood tall, and the average amount people earn rose by 4.5%.
The sectors that saw the highest growth include:
clothing (up 55%)
e-commerce (up 88%, with a record 12,490 new businesses registered)
retailers of medical goods (up 176%)
As well as these, the food delivery service industry increased, due to demand—a sector that has seen a vast number of new start-ups.
Economists and business pundits expected unemployment to be higher at this stage of the pandemic; it appears that the economy is stabilising. That more and more entrepreneurs are stepping up and launching new start-ups is another good sign for the UK.
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