2016 will likely be remembered as a year of economic uncertainty, but it was also a good year to be an entrepreneur in the UK, according to Barclays research.
Barclays’ eighth Entrepreneurs Index, which tracks the entrepreneurial lifecycle across UK regions, using data to measure start-ups, business growth and exits, showed that overall UK entrepreneurial performance is at an all-time high – up 10 per cent since 2011.
In this latest edition of the Index, for the first time, Barclays has combined environmental measures, such as access to finance and talent, along with entrepreneurial outcomes, such as growth and exit activity, in order to assess the strength of the UK’s entrepreneurial environment and opportunities for wealth creation.
The UK’s environmental enablers for entrepreneurs are up 13 percentage points in five years and, encouragingly, 4 percentage points higher than in 2015. This shift was driven by greater access to finance and skills, and also gradual improvements in regulation and research and innovation, all of which created optimal conditions for enterprise across the country.
On a regional level, particularly in the Midlands, entrepreneurial activity has continued to thrive. The number of new businesses in the Midlands rose by 4.8% in the year to March 2016 reaching a total of 373,250 start-ups. The Index also showed a steady rise in the percentage of high-growth companies within the Midlands SME population, with a 1.7% increase. This is the highest percentage rise over any other region showing strong progress year-on-year.
Whilst entrepreneurship in the Midlands apparently continues to flourish, we cannot ignore the fact that this year, Britain has gone through significant economic and political change. However, instead of feeling discouraged by the complexities of the Brexit results in particular and how it may impact them, entrepreneurs and business leaders should feel positive about the wider economic opportunities available to them, as evidenced by some of the findings of the Index.
At Barclays we firmly believe that entrepreneurs are instrumental to the future of the UK. In order to succeed, whilst also coming to terms with the aftermath of the Brexit vote, we recognise that nothing must stand in the way of entrepreneurs in the Midlands access to talent, skills and the UK’s ability to attract inward investment. That is why are focused on providing specialist support and funding for high-growth companies in order to generate tomorrow’s world beaters that will in turn drive economic growth and job creation.