Small businesses in Britain get jumpstart thanks to startup companies
- POSTED: 08 Jan 2014 18:05
This graph is an experimental feature that tracks number of views over time.
Thanks to startup companies, recently formed small businesses are getting the chance to showcase their products in pop-up shops.
LONDON: A record number of new companies were set up in Britain, with over 500,000 registered.
Government initiatives as well as an improving economic climate have encouraged more people to leave their day jobs and become their own boss.
With the British economy set to grow at a faster pace in 2014, new businesses are expected to fare well.
On Piccadilly, prime retail space is among the most expensive in London, where tenants are usually top luxury brands. But thanks to initiatives like Startup Britain, recently formed small businesses are getting the chance to showcase their products in pop-up shops.
“It is very difficult to find a shop, rent is expensive, particularly as we are not established and Pop Up Britain has helped us find a short term opportunity that is affordable,” said Skye Xu, founder of Collectionaires.
A major challenge for new businesses is that bank lending remains restricted. But many are now benefitting from government support, including tax breaks for investors and loans to help get budding business ideas off the ground.
Like Pieboy, a hat company that was started by a group of friends while they were at university.
"When we decided to go in to retail we had a bit of a problem. We needed a lot of money and quick. Startup loans were a life safer. We got 10,000 pounds and were able to start a new collection in a month and a half,” said Stan Reinholds, co-founder of Pieboy Clothing
And business experts say there has never been a better time to start a business in Britain.
“You can start a business on a budget, you have the freedom and flexibility to become your own boss, you can grow a business from home and there is the support to do it so there is a change in culture and Britain is at the most entrepreneurial it has been,” said Emma Jones, co-founder of Startup Britain.
Business experts add that the effect on the economy of startups should not be underestimated. Nicholas Russell is the founder and CEO of We Are Pop UP, which helps retail businesses find temporary spaces to showcase their products.
“If you look at the entrepreneurs running those pop ups, they have interfaced with the community - buying from suppliers, employing people, bringing livelihood back to economically depressed areas. Especially food startups, the fascinating thing about food startups are that people are willing to travel to get to them,” he said.
Of the 4.9 million small businesses in the UK, over 95 per cent are looking to expand in 2014. So whether through hiring new staff, growing their product range or beginning to export, they are set to be a powerful driver of the country's economic growth.