So where does that leave us today? Well, we can probably agree that it’s a good thing people who aren’t genuine entrepreneurs are no longer qualifying for the tax treatment supposedly reserved for real company owners. Equally, no-one wants to see people launching new businesses simply because they can’t find the paid employment they really want.

“>

Is Britain’s love affair with entrepreneurship coming to an end? In each and every year from 2007 to 2016 the number of new businesses registered with Companies House increased; now, however, that trend has come to an end – last year saw a 10 per cent fall-off in start-ups, the latest data shows.

Some 589,009 new companies incorporated during 2017 according to Companies House, down from the record set in 2016 of 657,790. The numbers only provide a proxy for entrepreneurship, since sole traders setting up in business without launching a company aren’t included. Nevertheless, this appears to have been an abrupt change of direction for the UK’s start-up culture.

What’s going on? Well, analysis from the Centre for Entrepreneurs (CFE) highlights a couple of explanations for last year’s decline in company registrations.

The first is a technical matter: two years ago, the Government announced a raft of measures to address “disguised employment” – people setting up companies for tax reasons when they were really employed; this has seen the number of such companies come down, accounting for around half the fall-off in start-ups according to the CFE.

The second factor, the CFE argues, has been the tougher climate into which entrepreneurs have had to consider launching businesses. Partly that’s a reflection of the economic outlook, but the policy backdrop has also been important. Not only has the current Government been less vocal in its encouragement for entrepreneurs – let alone actively supportive – but it has also presided over changes that small businesses struggle with, including higher business rates and increasing regulation.

It’s also worth pointing to a third explanation to add to the CFE’s unpicking of the start-up figures. Unemployment in the UK has been falling steadily, to its lowest levels since 1975 according to data released this week by the Office for National Statistics. The number of people in work has reached a record high.

At least part of the explanation for the surge in start-ups seen over the past decade has been that for large periods of that time, it wasn’t easy to find employment – some entrepreneurs have launched their own ventures out of necessity, rather than a genuine desire to do their own thing.

So where does that leave us today? Well, we can probably agree that it’s a good thing people who aren’t genuine entrepreneurs are no longer qualifying for the tax treatment supposedly reserved for real company owners. Equally, no-one wants to see people launching new businesses simply because they can’t find the paid employment they really want.

Let’s block ads! (Why?)


Source link

Load More By admin
Load More In Entrepreneurship
Comments are closed.

Check Also

Macon and Watkins Getting Pro Careers Started

(Photo: Kyle Terada, USA TODAY Sports) Their journeys to West Virginia were different. The…