The number of small businesses set up in the second quarter fell by 11 per cent against last year as entrepreneurs felt the effects of economic uncertainty and the stock market decline, according to research from Barclays bank.
Between April and June, 82,000 business started trading in England and Wales, compared with 92,000 in the same period last year, says a survey by the bank.
Barclays pointed to stock market losses and lower summer retail sales affecting the number of businesses being set up. The golden jubilee holiday period and the World Cup may also have delayed people from launching start-ups.
"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", it added in its quarterly start-up survey.
