Huge boom in new businesses in London during Covid pandemic

Data suggests that a significant number of Londoners decided to start their own business during the pandemic.

<p>Christoph Riech CEO of Iwoca. Credit: Iwoca</p>

Christoph Riech CEO of Iwoca. Credit: Iwoca

More than 120,000 businesses were created in London in the first half of 2021, according to research by Iwoca.

Analysis of Companies House data revealed that over 668 new businesses were registered in London every day during the six-month period.

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The total number of new firms increased by 59% compared to the same period in 2019 when 75,704 businesses were registered.

Iwoca’s research showed that across London, Camden saw the highest total number of new firms registered out of all local authorities.

This was followed by Hackney, with 13,646 new business, and Westminster, with 10,151.

Camden saw the region’s sharpest percentage increase in new businesses from 2019 to 2021, with the number of new firms almost tripling.

Indeed, London’s local authorities make up half of the top 10 areas with the highest number of start-ups.

London had the highest number of new businesses out of all UK regions, with 120,338.

Christoph Rieche, iwoca CEO and co-founder, said: “It is fantastic to see the creation of so many businesses during the first half of this year, they are testament to the entrepreneurial spirit which characterises our vibrant economy.

“Many of these businesses will be unnecessarily constrained by cashflow.

“At Iwoca we turn cashflow into a superpower enabling them to grow faster and worry less.

“We look forward to working with many of them.”

Increase in new small businesses signals rise in entrepreneurship

This sharp increase in the number of business registrations points to a rise in entrepreneurship as people reassess their work priorities.

The number of people on furlough in London dropped by 53% over the first half of 2021.

Whilst many will have returned to their old jobs, the Companies House data suggests that a significant number have decided to start their own business.

The creation of these new businesses will also provide additional job opportunities, and may have contributed to the number of vacancies increasing by 102% in the city since the start of the year.