London has seen a wave of COVID entrepreneurs with 62% more businesses registered in 2020 than in 2019.
The research from accountants, business and financial advisers Kreston Reeves is based on analysis of corporate databases that draw on information provided by Companies House in 2019 and 2020.
In London, 199,949 new businesses were incorporated at Companies House, an increase of 62% on 2019 when 123,615 new businesses were registered.
Across the UK, 772,002 new businesses were incorporated at Companies House in 2020, an increase of 14%.
Commenting on the research, Michael O’Brien, Partner, Kreston Reeves said: “Times of crisis are often a source of inspiration for entrepreneurs as they look to capture an opportunity, and that is true of 2020. London and the South East has seen a wave of COVID entrepreneurs, far outstripping business start-ups across the rest of the UK.
“It should, of course, be noted that many of these new incorporations will be subsidiaries of existing businesses looking to expand their offerings, but we believe that the majority of them will be new businesses where the individual has taken time in 2020 to think about the direction they want to head. Some will remain small, operating from home, but others will grow and help build our post-COVID economy.
“Government support has focused to date on supporting existing businesses that have been impacted by the global pandemic, and that is as it should be. But government should also look to measures to support this new wave of entrepreneurialism to help them grow and become the engines of tomorrow’s economy.”