Big fall in new start-ups
Steepest decline in new businesses registering with Companies House since 1970s oil crisis
The number of new companies being started in Britain has dropped sharply in
the biggest decline since the mid-1970s oil crisis.
77,300 fewer start-ups registered with Companies House last year than in
2007, a decline of 17.2 per cent, according to Wilkins Kennedy.
The firm says the drop in numbers is almost double that of the previous
recession. In 1991 there was an 8.6 per cent decline in new start-ups.
Lack of access to credit is cited as a key factor behind the drop in start-up
numbers. A Bank of England survey last month found that banks further reduced
the amount of available credit in the final quarter of 2008.