Our company formation subsidiary, companiesmadesimple.com reports that despite the economic malaise, the statistics for new formations are holding up very well.
Companies House have been somewhat downbeat over the last few months suggesting that the numbers of companies being formed have fallen considerably and this has been latched onto by some parts of the media.
However, the reality is different.
We have carried out an analysis of the formations from the first week of January to the end of May. Whilst the year on year figures for the early months are showing a decline, the overall position as the year has progressed is showing some promising signs.In fact, whilst between 4 January and 31st May, 146,167 new companies were formed compared with 153,238 in the corresponding period for 2008, a fall of 4.61%.
However, if one reworks the figures excluding January, the fall is only 2.13% and seems to be improving all the time. In fact taking the month of May alone, the figures are actually up by 6.8% with 33,685 companies formed in that period compared to 31,539 in 2008 for the corresponding period.A four week rolling average also confirms the position with the statistics at the end of May suggesting an increase of 9.03%
In itself, this may not be indicative of anything other than an increasing number of people in the face of redundancy deciding to do their own thing. What is probably more important is the number of these companies surviving and actually growing.We will be carrying out a similar analysis of the companies remaining on the register which may shed some more light on the position.
We will be watching this data and updating it regularly, but if the company formation figures are anything to go by, there are definitely some encouraging signs.
HG
Filed under: Company Formation, Credit Crunch Tagged: | companies house, company formations, formations
That’s 7,000 more than the previous year. Is this the growth every year?