02 Feb Insolvencies on the rise, but outpaced by new start ups
According to recent research by Creditsafe, insolvencies in 2011 are set to be 4% higher than in 2010, but it’s estimated there will be 18% more new business start-ups in 2011 (471,466) compared to 2010 (400,570).
London is by far and away the largest city for new start ups with 159,157 projected for 2011 and, though considerably lower, Birmingham is still by a significant margin the ‘second city’ with approximately 14,000 new business start ups to Machester’s 10,000.
Most tellingly though is the relatively high increase for Yorkshire & Humber and the North East, an area hard hit by the recent public sector job cuts. David Knowles, Business Development Director at Creditsafe, said “And it’s perhaps no coincidence that Yorkshire & Humber and the North West – which have seen the biggest public sector job cuts – have also seen significant rises in start-ups. This could suggest that those made redundant in the public sector are starting new ventures in the private sector.”