Are we finally coming through the recession?

The number of new companies is on the rise giving possible indications that British business owners are fighting back against the recent financial crisis.

The number of businesses registered with Companies House rose by 10 per cent to 362,300 in 2009/10, up from 330,100 in 2008/9. 
In 2007/8 company incorporations fell by 17 per cent to 372,000 in 2007/8, followed by a drop of 11 per cent to 330,000 in 2008/9. The news is heartening, especially considering the number of individuals who lost their jobs over the last 18 months. Indeed it is many of these individuals who have now taken their future into their own hands and started their own companies rather than enter corporate employment. The recent budget by the new coalition should only serve to encourage entrepreneurship as it included a 1% reduction in Corporation Tax, now down to 20% for small companies and a rise in the threshold for entrepreneurs relief on capital gains tax from £2m to £5m.

Have we now ridden the worst of the credit crunch? Let us know your thoughts and we will endeavour to post all of your comments.

The Team @ Acorn Business Performance