Although London remains the key driver of economic growth on a UK basis, high demand for commercial property has pushed rents up and therefore limited the opportunities for entrepreneurs seeking to launch a new business. However, north of the border Scotland has seen a huge boom in the number of start-up firms beginning to trade in the past year, with the result that it has now seen the highest number of company incorporations since records for Companies House began in 1997.
In total, 27,602 new start-ups were established in Scotland between the first of January and the 31st of December 2013, marking a 9 per cent rise from the 25,454 registered in the previous fiscal year. This was a significant growth from the 5.9 per cent increase in new firms from 2011 to 2012 according to data released by Scottish business incubator Entrepreneurial Spark.
Furthermore, the start of a new year has failed to dampen the enthusiasm for business creation held by Scottish entrepreneurs. In March alone, 2,661 new company incorporations began, equating to a 10 per cent year on year increase and a 9 per cent increase from February’s figures.
Founder of Entrepreneurial Spark, Jim Duffy, believes that the aftermath of the recession and the new opportunities open to young entrepreneurs have both played a role in this sudden start-up boom.
He says; “Coming out of a recession, a new industrial revolution is starting in Scotland.
“So many people, who didn’t think they were capable of turning their hand to entrepreneurship, are now doing it.
“There’s crowd funding and new start-up hubs – the traditional route where you needed a lawyer and a pot of money to launch a business isn’t the only way to get started now.”
Should Scotland’s start-up rate continue on its present trajectory, analysts predict that this year could see a total of 47,000 new businesses launched in the country. Not only is this good news in terms of employment, it will also act as a means of rejuvenating stagnant local economies and attracting larger firms to Scotland.
Entrepreneurial Spark has taken huge steps in helping Scottish entrepreneurs make their business ideas a reality, utilising the skills of business figures such as Sir Tom Hunter and Ann Gloag OBE, the co-founder of Stagecoach, in its mentoring programme. As of the current moment, businesses which have worked with the incubator have generated more than £15 million in turnover and created a total of 520 new jobs, as well as having attracted £8 million worth of outside investment.
Mr Duffy believes that the current pace of start-up activity is set to continue as Scottish workers have increasing confidence in their own abilities.
He concludes; “There’s an entrepreneurial renaissance happening.
“People are realising that there is no job for life anymore, so they are moving outside their comfort zone and taking a chance.”
Do you think the independence referendum will have an impact upon start-up creation in Scotland, and will this be positive or negative in your opinion?
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