Commercial loans could help revive business start-ups, Barclays reveals

21 June 2005
The latest figures from Barclays reveal that the number of small business start-ups has fallen so far this year, suggesting that commercial loans could help revive them.

According to the Barclays statistics, the number of small business start-ups fell to 116,300 in the first quarter of 2005, compared to 129,500 at the same time last year.

Barclays attributes the faltering figures on slow spending on the high street and uncertainty in the housing market.

"Despite this slight fall, start-ups are still 15 per cent higher than average for this time of year (99,000)," commented Louise Fowler, small business marketing director for Barclays.

"However despite the good start, the fall in consumer spending on the high street and uncertainty surrounding the housing market are set to dampen start ups for the remainder of the year. We expect start-up figures to end the year at around 430,000, compared to 460,000 in 2004."

Forty-five local authorities across England and Wales actually saw an increase in start-ups, with Torfaen (Wales), Barking and Dagenham (London) and Rotherham (Yorkshire) seeing the most, at 62 per cent, 59 per cent and 56 per cent respectively.

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