Sheffield has seen the creation of more new businesses in the start of the year than any other UK location, new research has revealed.
The research, conducted by Tide, analysed Companies House data to find how many businesses have been registered or ceased trading since the beginning of 2020, breaking down the data by month, industry, and location.
Between 1st January and 31st May 2020, more than a quarter of a million (278,325) business owners registered their venture with Companies House. When it came to locations (based on the businesses’ registered postcode), Sheffield saw the highest number of business registrations with Companies House during this period, with more than twenty-one thousand.
The ongoing coronavirus pandemic has had an impact on the business world, and the monthly registration data mirrors this – just 42,651 businesses were registered in the UK in April, compared to more than 60,000 per month at the start of the year.
By reviewing the SIC codes attributed to the new businesses, the ‘management consultancy activities (other than financial management)’ industry was seen to be thriving, with 10,802 (almost 4% of new registrations) registered under this SIC code.
With lockdown being enforced over several months, this has also created a surge in demand for delivery services in particular. Companies House data also showed that e-commerce and home delivery companies are the second most popular company type registered up to the end of May 2020, with 10,568 new companies formed.
Ranking in at number 10, takeaway food shops and mobile food stands were responsible for 5004 new companies, compared to just 2861 licensed restaurants.
“As the Companies House data shows, thousands of people are starting companies right now, including plenty of savvy business owners in Sheffield,” said Sarah Young, VP of Member Engagement at Tide.
“The virus has certainly been catastrophic for the economy as a whole, but people are still living, working, and shopping from home, ensuring a steady supply of demand for companies that can cater to their needs.
“If your new venture is designed to operate in these challenging conditions, and has the ability to adapt and shift as lockdown eases and the world returns to normal, then you have the best chance of success.
“In the midst of a global pandemic, whether it was the push needed due to a redundancy, a chance to focus on a previous side hustle or to seize an entrepreneurial business opportunity, business owners are fully aware of what it will take to succeed in this environment.”