Over recent years, the UK has seen a boom in start up businesses in many areas, with a rising number of people taking the plunge and starting their own ventures in the face of a difficult and challenging employment market. This has led to a sharp increase in the number of start up businesses around the UK, and the trend is now also being seen in Scotland according to recent reports.
Data shows that the numbers of new company incorporations in Scotland have now hit record highs, with more than 27,500 new businesses being created in the past twelve months. This is the highest number on record, beating any of the past figures recorded by Companies House since it was established back in 1997. In total there were 27,602 new company incorporations in Scotland last year, which reflected an increase of close to 9 percent compared to the previous year.
Figures show that the number of new company start ups is continuing to gather momentum in Scotland this year, with March 2014 seeing 2661 new companies being incorporated. This reflected an increase of 9 percent compared to the previous month and an increase of 10 percent compared to the same month last year. Based on the current trend 2014 could see a total of more than 47,000 new companies being created in Scotland.
Over the course of 2009, when the recession was in full swing, Scotland only saw 16,924 new companies being created, which equated to less than 5 percent of the total number of businesses incorporated throughout Great Britain during the course of that year. Some experts have described the riding figures as a new industrial revolution.
Eighteen months ago, Scotland launched a new government initiative called the Edge Fund, which was created to help spark innovation by providing access to funding for entrepreneurs looking to expand their businesses. Some officials have said that this fund has played a big part in Scotland’s success when it comes to business start ups, as the support for local entrepreneurs appears to be providing encouragement for those interested in starting their own businesses. It is also down to the fact that people are no longer secure in their jobs.
One industry official stated: “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.”