Pandemic-born businesses could add £20.4 billion to UK economy
07 Jul 2022
More than £20 billion could be added to the UK economy in the future from the number of additional businesses created during the pandemic, according to research carried out by the Confederation of British Industry (CBI).
Around 800,000 companies were registered in the first year of the pandemic, a 22% increase compared with the previous year. Only 13% of these start-ups cited regulation as a challenge when starting their business.
However, access to finance was a key concern for many burgeoning business leaders, with 55% highlighting this post-2020, compared with 42% pre-Covid.
The research also found that businesses born during the pandemic are 20% more likely to embrace sustainability than firms established prior to 2020.
Tony Danker, Director General of the CBI, said: 'Pandemic-born businesses – led by ambitious, resilient entrepreneurs – have innovated in so many ways, and at such speed, giving me great sense of optimism. It's crucial we give these leaders the support they need to grow and succeed.
'Rising energy prices, supply chain challenges, an uncertain economic outlook and cost-of-living crisis mean we've some testing months, and possibly years, ahead. For start-ups which count their experience in months, not years, that environment is even tougher.
'That said, even if the cost of doing business is rising, the cost of starting a business shouldn't. The UK needs the ideas and ingenuity of entrepreneurs to help us grow.'