Selectabase Research Shows New Business Start Ups Continue to Defy Economic Gloom

The number of new businesses starting up in the UK rose dramatically in September, and followed three months of increases compared to 2007. The figures have been released today by Selectabase, a direct marketing company whose Startupsplus list tracks new business openings each month across the UK.

At the end of May 2008 year the number of new business start ups was actually down compared to 2007. Then from June to the end of September, the trend dramatically reversed and business start ups are now up a third on the same period last year.

September 2008 has seen the greatest rise – over double the numbers of start ups compared to September 2007.

The Startupsplus figures give one of the most accurate indications of start up activity in the UK, because they are far more inclusive than other sources of data. For example Startupsplus includes new businesses based at home or at premises, limited companies and sole traders, and both VAT and non VAT registered businesses.

Because the trend coincides with the worst of the recent economic woes, it has led Selectabase to look at some of the reasons behind the increase in start ups.

"It seems as if the worse the economic situation gets the more new businesses start up" observed Steve Sellwood, Joint Managing Director of Selectabase. "This makes us think that people are leaving or either losing their jobs or are going it alone maybe because they've lost confidence in their employers or sector, or also because new jobs simply aren't there" Sellwood added.

Alternatively, according to Sellwood "some of the new start ups could be because a wife or partner has needed to start bringing extra income into the household to help cope with rising costs." These assumptions seem to be borne out by the types of new business to be started, with hairdressers and beauty consultants featuring in the top five.

The larger numbers of new start up's are obviously good news for the economy. According to Selectabase start ups are a valuable source of new business for many other trades and industries, as they usually make a wide range of purchases when establishing their business, from professional services and office furniture, to IT and stationery.

More information about targeting the growing numbers of start ups using Startupsplus data is available from www.selectabase.co.uk/startupsplus or by calling 01304 382211.