Still a good time to start up

If you have picked up this guide and are reading this page, the chances are that you are thinking about starting your own business. And, despite whichever direction the prevailing economic wind is blowing in, you are not alone. Until the recession in 2008, more and more people were feeling the entrepreneurial urge. More than 200,000 new businesses registered for VAT (value-added tax) in 2007, according to the latest government statistics in November 2008 – a rise of 23,700 over 2006. Although the 2008 fi gures won’t be available until late 2009, indications are that there will be only a small  decline in VAT registrations, despite de-registrations – those companies going out of business – expected to increase signifi cantly, according to the Department of Business, Enterprise and Regulatory Reform. This is because many people who have lost their job are starting up on their own.

Despite the downturn, small- and medium-sized businesses remain a key driver of the UK economy. The days of hundreds of large companies employing thousands  of staff are no more. The number of aspiring entrepreneurs starting small businesses has surged in recent years, and their companies now make up 99.9% of the total businesses in the UK, and are responsible for almost half of the UK’s workforce.