Posted: Tue 6th Oct 2020
New business formations in the first nine months of the year were 9.5% higher than the same period in 2019, new data reveals.
The Centre for Entrepreneurs' analysis, which follows a record breaking increase in start-ups in June, showed 572,882 companies have launched in 2020 so far.
All English regions and devolved nations saw year-on-year growth in September with an average 29% rise.
When looking at March until September, London saw the biggest year-on-year increase in new start-ups at 20%, followed by Yorkshire and Humber with 14% and Scotland at 12%. Northern Ireland and Wales however saw an overall decline in company formations.
The rise of the 'COVID economy'
Among the sectors showing an increase in start-ups were those in the so-called 'COVID economy' which refers to firms selling products or services to deal with coronavirus or responding to trends caused by it.
In July-August, companies manufacturing soaps and detergents increased by 64% year-on-year, disinfecting services rose by 70% and wholesale of pharmaceutical goods saw a 55% hike.
New entrepreneurs also continued to respond to the demand for online shopping with businesses selling via mail order and the internet increasing by 58%.