Voted the “Year of the Start-up” in 2020, with a record 770,000 companies founded in the UK
A massive 770,000 new businesses were launched in 2020 – a record in the UK.
Figures from Tyl by Natwest show that the number of startups has increased by 30 percent compared to 2019. Aside from April, 50,000 new businesses were launched every month in 2020.
In a year of bulk closings across the street, entrepreneurs turned to the digital market to set up a business. This made online and mail order the most popular creation sector in 2020.
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305,608 online and mail order businesses were launched in 2020, compared to 13,615 in 2019. Real estate buying and selling was the third most popular source of startups, up 40 percent from 2019. The number of food stalls opened increased by 33 percent in 2020 compared to 2019.
The pandemic hit the female workforce particularly hard. Women were 1.8 times more likely to lose jobs than men. So women had to find new sources of income like Etsy. A massive 81 percent of sellers on the platform identify as women and 69 percent consider their Etsy shop a business. The platform had 1.9 million active sellers in 2020, an increase of 1 million from 2019.
Leicester saw the largest increase in new businesses created relative to its population. For every 100 residents of the city, 1.68 new companies were founded. It’s even more impressive when you consider that Leicester was the first city to be banned and the longest to live under Covid-19 restrictions.
Commenting on the results, Mike Elliff, CEO of Tyl, said: “Despite the many challenges facing businesses, communities and the world, the resilience and ingenuity of UK entrepreneurs is one of the great untold stories of the past year.
“The entrepreneurial energy of new business owners deserves great recognition. And while we all look forward to a world with no lockdowns, we hope that the spirit of our agile, innovative, and fearless start-up communities can continue into the future. “
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