Startups outstrip business closures in 2021

Aug 12, 2021

More startups were created in the first six months of 2021, compared to the number of businesses that closed over the same period.

Between April and June 2021, 105,455 businesses closed, compared to the 73,580 that closed during the same period in 2020.

The ONS said the unusually low amount of business closures in Q2 2020 was a result of the unprecedented amount of support given to businesses at the start of the pandemic.

The number of businesses that closed in Q2 2021 was still higher than pre-pandemic levels, as businesses struggled to trade amid lockdown restrictions.

On the other hand, 136,765 startups were created in Q1 2021 (up 16% year-on-year), followed by 96,895 in Q2 2021 (up 25% on Q2 2020).

The number of startups in Q1 2021 outstripped the number of closed businesses by 25,260, although a further 8,560 firms went out of business in Q2 2021.

This figure could be poised to increase further as Government support, such as the furlough scheme, ends on 30 September 2021.

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