While business start-ups totalled 342,000 in 2001, down 15% on the previous year, the small business picture is not as bad as it might seem, according to research published by Barclays.
In the final quarter of 2001, 79,300 new businesses started, nearly 6% fewer than in the same quarter in 2000. Despite these less than rosy figures, seasonally adjusted data shows the closing months of 2001 to have been encouraging with an upturn in start-up activity evident. A sharp drop in starts in the first half of 2001 was largely responsible for the dramatic nature of the 2001 figures. The 6% drop in Q4 2001 start-ups compared to Q4 2000 can be seen in a positive light, since it represents a marked improvement on the 27% drop in Q3 2001 compared to Q3 2000.
