The number of businesses in Devon reached a record high during 2021 despite the continuing economic challenges resulting from the Covid pandemic.
The total number of registered companies in Devon rose to 60,022, up from 57,278 at the end of 2020 - itself a record year for new business start-ups in the county.
The 2021 hike represents an increase of 4.8%. During the year 6,825 new businesses were registered in the county, slightly down on the 7,174 registered in record-busting 2020.
The statistics come from the Inform Direct Review of Company Formations using data from Companies House and the Office for National Statistics.
Plymouth formed the highest number of new businesses (1,416), followed by Exeter (1,054) and Teignbridge (824). There were a total of 10,238 businesses in Plymouth, Exeter had 9,193; Teignbridge had a total of 7,182; and the 823 new businesses in Torbay brought the total to 7,124.
Devon was still only the 30 th highest area for business formation, however, with London’s 269,246 new ventures topping the list ahead of the West Midlands (36,485) and Greater Manchester (36,442). The same three areas are top for total companies, with Devon in 18th place.
Six businesses were incorporated for every 1,000 people in Devon, below the national average of 12.2. Nearly all of them (94%) were private limited companies, with the remainder a mix of public limited companies, limited liability partnerships, companies limited by guarantee and community interest companies.
Devon has seen an increase in the number of businesses formed each year now since 2017. However, 2021 also saw 5,551 businesses dissolved in Devon. This was the highest number in any of the past five years and an increase on the 3,994 dissolved in 2020.
In Cornwall, there were 2,993 new companies, placing it 41 st in the national list, but 2,145 were dissolved, giving a total of 24,752. The duchy was at number 42 in the table for total businesses and had a 4% overall increase year-on-year.
But again, it has seen the overall number of businesses, and new start-ups, increase for five years running. The number dissolved rose in 2021 from 1,825 in 2020 and was the highest number in any of the past five years.
Dorset had 7,584 new registered firms, and 6,001 dissolutions, giving a total of 56,465. Somerset’s 7,0567 new businesses, and 5,667 that went out of business, led to a total of 57,300.
John Korchak, operations director at Inform Direct, said: “It is excellent news to see that Devon 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 (869) 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 construction with 862 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% 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.
Whilst 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.
Inform Direct is a company secretarial and formation specialist. Its award-winning software currently supports about 250,000 UK companies.
