People trying to create businesses in Peterborough, Stamford and Rutland could be put off by the economy
It's as a record low number of businesses were created across the UK in the final quarter of last year
People trying to create businesses in Peterborough, Stamford and Rutland could be facing more challenges than in previous years.
A record low number of businesses were created across the UK in the final quarter of last year.
Business group the Institute of Directors warned the falling trend was "concerning" and called on the Government to "ease the significant pressures on business".
Figures from the Office for National Statistics (ONS) show 65,450 new businesses were created across the UK in the three months to December - down 8.5% from the same quarter a year earlier and the lowest number of any quarter since records began in 2017.
The business community is looking for a vote of confidence
Katrina Pierce from the Lincolnshire Federation of Small Businesses said:
"When we look at the last quarter, I think the general operating conditions that small businesses are trading under—high input costs, high labour costs, and lack of money amongst the populace—I think all of that is off-putting to those who should be starting up businesses and are the right people to do it, but they don't see the incentive right now."
"I think the general conditions and narrative amongst the popular are one of a depressed economy."
"That doesn't scream to a young entrepreneur, for example, that this is the time to do it."
"Arguably the country and the economy need them to do it more than ever, but I think the depressed economy narrative is probably bearing down on them."
"There's several things that need to change and change quickly."
"The business community is looking for a vote of confidence."
"They need to see that the UK is the best place to start and grow a business, and I think that message needs to come through more strongly from the government."
"This needs to materialise in increased funding and targeted campaigns to encourage young people to start their own enterprises."
There's several things that need to change and change quickly
Some 13 of the 16 main industrial groups saw a fall in the number of businesses created over the past year.
The most significant falls were seen in the transport and storage industry, followed by the business administration and support services sector.
But separate figures from NatWest indicate there were around 5.6 million active businesses in the UK as of the end of 2024, the highest figure on record.
The ONS figures also show 69,435 businesses closed in the three months to December, which was 7.3% lower than in the same quarter in 2023.
A Government spokesperson said:
"We're backing British business through our Plan for Change, which includes tackling the scourge of late payments and introducing a fairer business rates system which incentivises investment."
"We will be publishing our plan to help small businesses start up and grow later this year."