Start up record for Devon businesses

Devon has smashed the record for the number of new businesses launched in the area in a single year, according to new research.

Statistics, compiled by www.informdirect.co.uk, have revealed that there were 5,501 companies formed in 2014, up from a previous best of 5,280.

This brings the total number of businesses operating in the region to a high of 42,661.

There are now 4.4% more active companies than there were a year ago and 28% more than there were five years ago.

Henry Catchpole, CEO of Inform Direct, said: “This is clearly an area where fledgling firms are flourishing and where people are starting to make their dreams a reality in the word of business.”

There were 1,198 new companies formed in Plymouth, followed by 760 in Torbay and 749 in Exeter.

But Mr Catchpole warned that it was not all good news for Devon.

“While Devon registered marginally more new companies than neighbouring Somerset, the number of companies dissolved in the county was much higher than its neighbour,” he said.

“That means that while Devon retains fractionally more active companies on the register than Somerset, the gap narrowed in 2014 and could be erased entirely in 2015.”
He said the 3,706 companies dissolved in Devon in 2014 meant that for every 10 companies formed, nearly seven were dissolved.

Last year in the UK as a whole, 586,784 new businesses were registered with Companies House taking the total number to a record high of 3,509,084. Private limited companies made up over 95% of all formations.

And, while Britain has long been famed as an enterprising nation, the recent explosion in start-up activity has been exceptional.

Mr Catchpole suggests that there are three complementary factors fueling this growth.

First, there is the ease and speed with which a company can be started – usually within hours and generally for less than £20.

Secondly, many companies can successfully operate from home and need little more than a website before they can start trading.

Thirdly, there are improved channels for accessing capital.

Crowdfunding is a good example of this, making it easier for new companies to get early stage backing and therefore encouraging would-be entrepreneurs to give it a go.

In bringing together data available from Companies House and the Office of National Statistics, Inform Direct has built up a truly unique picture of how many businesses are now operating across the UK.

Inform Direct provides a cloud-based solution enabling businesses and their professional advisers to manage all their company records. The service provides an online platform for a range of actions including submitting annual returns, updating shareholder records, creating share certificates, changing your company name, producing dividend vouchers and of course forming new companies!