More than 1,520 businesses were created in Nottingham in the first half of 2021, according to research by iwoca - one of Europe’s largest small business lenders.
Analysis of Companies House data reveals that over 8 new businesses were registered in Nottingham every day. The total number of new firms increased by 37% compared to the same period in 2019 when 1,110 businesses were registered.
Nottingham sees highest spike in business registrations in the East Midlands
iwoca’s Small Business HotSpots UK 2021 shows that across the East Midlands, Nottingham saw the highest percentage increase of new firms registered out of all local authorities (37%), followed by Leicester and Derby with 28%.
Northamptonshire saw the highest total number of new firms registered out of all local authorities in the region with 3,431, followed by Leicestershire (2,329) and Nottinghamshire (2,267).
The East Midlands had the eighth highest number of new businesses out of all UK regions, with 16,790. London topped the list with 120,338 followed by the South East (37,573) and North West (33,640). The total number of businesses registered in the UK during the first half of 2021 was over 340,500, increasing by 32% from 257,243 in the first six months of 2019.
Increase in new small businesses signals rise in entrepreneurship
This sharp increase in the number of business registrations points to a rise in entrepreneurship as people reassess their work priorities. The number of people on furlough in Nottingham dropped by 61% over the first half of 2021, and by 62% across the East Midlands. Whilst many will have returned to their old jobs, the Companies House data suggests that a significant number have decided to start their own business. The creation of these new businesses will also provide additional job opportunities, and may have contributed to the number of vacancies increasing by 99% in the region since the start of the year.
Christoph Rieche, iwoca CEO and co-founder, said: “It is fantastic to see the creation of so many businesses during the first half of this year, they are testament to the entrepreneurial spirit which characterises our vibrant economy.
“Many of these businesses will be unnecessarily constrained by cashflow. At iwoca we turn cashflow into a superpower enabling them to grow faster and worry less. We look forward to working with many of them.”
iwoca was founded to support micro businesses which are underserved by high street banks and larger lenders, and is committed to helping these smaller firms recover from the pandemic. iwoca has significantly reduced the time it takes for customers to apply for loans and for the money to be deposited into a bank account. The company’s record is three minutes and 26 seconds.iwoca distributed nearly £400 million to small businesses through the Government's Coronavirus Business Interruption Loan Scheme (CBILS) and in June 2020 launched iwocaPay – an online buy now pay later invoice checkout to help small businesses get paid. The lender is reaching 1.8 million businesses across the UK and Germany through its embedded lending technology, which allows businesses to access loans through a range of platforms such as accountancy software apps and digital neo-banks. iwoca has also partnered with Mental Health UK on research to identify the needs of small business owners, and will soon launch a tailored mental health support package.