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Product category: Banking / credit / debt
News Release from: Barclays Group | Subject: Business banking
Edited by the Insidemoneytalk Editorial Team on 25 June 2008

Start-ups highest in three quarters,
says Barclays

Barclays estimates that there were 98,000 new start-up businesses in England and Wales in the first quarter of 2008.

Though down on the record figures seen in 2006-early 2007, the figures are the highest in the last three quarters, reflecting the resilience of business start-ups The number of start-ups and closures were also roughly the same for this quarter (99,900 closures), compared to previous quarters in which there were significantly greater numbers of closures (Q4 2007: start-ups 86,400, closures 111,900)

The most popular industries for start-ups were business and financial services (27,500 start-ups), construction (15,100) and the retail sector (10,700).

John Davis, Marketing Director for Local Business at Barclays, said: "Small business entrepreneurs are finding opportunities in the market place.

They are entering in reduced numbers, reflecting an uncertainty over short-term economic prospects, but clearly there's a feeling there is never a bad time to start a good business.

"We do anticipate further modest reductions in both start-ups and closures during the remainder of the year, set against the high numbers in recent years." Accompanying the latest figures for starts and closures are estimates on the contribution of non-UK nationals to small businesses.

These indicate that 10 per cent of mainstream businesses* and 15 per cent of start-ups in 2007 involved an owner-manager from outside of the UK.

"These figures show the great contribution being made to the UK economy by non-UK nationals," said John Davis.

"There is a lot of skilled labour going into these start-ups - for instance, in the health, education, and social work sectors, where over one in six start-ups have involvement from non-UK nationals.

"Unsurprisingly, the greatest contribution of these individuals to the business market is in London, where last year they were involved in nearly 30 per cent of SMEs and more than 35 per cent of start-ups.

They also play an important role in the business life of a number of urban areas outside of the capital." The other major sectors to benefit from the involvement of non-UK nationals include the construction, wholesale, retail, hotels and catering and business services industries sectors.

*A mainstream business has a business current account.

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