Despite a stagnating economy and fears over a tech bubble burst, the number of British entrepreneurs is on the rise, with one in eleven people of working age either running or starting a business last year.
Barclays bank found that in 2014, 8.6 per cent of 18 to 64-year olds are immersed in start-ups, compared to 7.3% in 2013, while the number of UK businesses is at an all-time high, with nearly 3.2 million active businesses operating in the first half of last year.
A Government report published by the Department of Business, Innovation and Skills also shows that small business owners are flourishing, as Britain contains over 4.5 million private sector businesses, with SMEs accounting for 99% of them.
The Federation of Small Businesses says that while self-employment is increasing steadily, the volume of employees is decreasing in large businesses, with their share of employment dropping from 45% to 40 % from 2000-2011.
However, while the rate of new companies is encouraging, most struggle to grow. Of the millions of SMEs in the UK, just 30,000 fall into the “medium-sized” category.
As FSB Chairman Mike Cherry comments: “The number of start-ups we’ve been seeing is staggering but, if they don’t have the additional mentoring and support, many of them fail within the first three years.”