Number of businesses in Shropshire hits record high
The number of businesses in Shropshire reached a record high during 2021 – despite the continuing economic challenges resulting from the pandemic.
Latest figures show the total number of registered companies in the county rose to 25,765, up from 25,603 at the end of 2020, representing an increase of 0.6 per cent.
During the year, 2,914 new businesses were registered in the county, including 1,098 company formations in Telford and Wrekin, but a further 2,811 were dissolved.
In Powys, there were 5,596 total businesses registered last year – 562 company formations and 442 which had dissolved.
The statistics come from the Inform Direct Review of Company Formations using data from Companies House and the Office for National Statistics.
John Korchak, operations director at Inform Direct, said: “It is excellent news to see that Shropshire has achieved a record high for the number of businesses in the county despite the continuing challenges of the pandemic.
“The retail sector saw the largest number of new companies with 368, which may be the result of pent-up demand after the lockdowns of 2020 and early 2021 and people looking to spend their income in different ways as a result of widespread restrictions on travel and entertainment. This was followed by property with 337 new incorporations.
“Reaching a new record number of companies demonstrates an active economy with entrepreneurs motivated to invest in new businesses which meet current and emerging demands for goods or services. The overall picture for the UK as a whole is also an optimistic one with the total number of companies now exceeding five million for the very first time.”
The UK saw 771,617 new businesses formed, compared to 780,760 in 2020. The overall number of UK companies totalled 5,005,147, a 3.5 per cent increase on the total of 4,837,426 at the end of 2020. This continues a 10-year trend which shows the number of businesses in the UK doubling in that period.
While company formations grew, the number of dissolutions across the UK – 606,912 during 2021 – hit a record high. Reasons for this may be that new enterprises set up early in the pandemic may no longer be operating, as people have returned to full-time employment or businesses thriving pre-Covid-19 have suffered as behavioural and spending patterns have changed.
To see a more detailed picture of company formations in Shropshire – including a full local breakdown – visit informdirect.co.uk/company-formations-2021/shropshire
