Small business formations increasing

Even amidst increasing unemployment in the UK, small businesses are still on the rise as entrepreneurs turn their hand to self-employment.

Data from Companies House revealed that over 430,000 new businesses were registered in 2011, compared to 384,000 in 2010.

Registrations in the first two weeks of January 2012 are also up 12% when compared to the same two week period in 2011.

The majority of start-ups emerging are tech firms, who capitalise on exponential growth in demand for new IT software, mobile phone apps and social media platforms.

Why the rise?

Many reasons exist as to why more people are opting to be self-employed with some looking to turn business dreams into reality and others wishing to cut the commute to work.

Cutbacks in the public sector may also have contributed to the rise, as those made redundant start by earning petty cash doing odd jobs, before realising a lucrative small business could be made out of their foray into the self-employed world.