The traditional summer ‘S’s - sun, sea and sand – were replaced in 2002 by a new ‘S factor’ which hit business start-up numbers between April and June, according to Barclays quarterly start-up monitor published last week.
Street parties, stock market difficulties and Sven’s boys all combined to push business start-ups down 11% compared to the previous year. Between April and June 2002, 82,000 businesses started trading in England and Wales; in the same period last year the number was 92,000.
While the nation’s spirits were buoyed by the Queen’s Golden Jubilee and the World Cup, manufacturing productivity and retail sales were both down in June.
Turmoil in the stock market may have reduced the personal wealth many entrepreneurs rely on to start new businesses. The main factor preventing start-up numbers from dropping further may have been the buoyancy of the property market and its effect on potential business owners’ feeling of financial security....
