Boom in new business births continues – VAT registrations up

The birth of new businesses continued apace during 2007 according to the latest statistics based on VAT registrations released by the Department for Business (BERR) today.

The total number of new business VAT registrations reached 302,000 in 2007, an increase of 18% on the previous year.

Although the number of businesses de-registering for VAT also increased to reach 209.000 in 2007, this was a rise of just 9% resulting in a net positive balance of business births vs business deaths.

Overall, there were 2.3 million active VAT registered businesses in the UK during 2007, compared to 2.2 million the year before.

This is roughly half of the total stock of SMEs in the UK which stands at 4.7 million.

The highest rate of ‘business births’ during 2007 were in the business serices and property sectors.  Two sectors which are likely to have been hit hard during 2008.

By region, the biggest percentage growth in new businesses was found in London, the smallest in Northern Ireland.

There has clearly been an increase in entrepreneurial activity in the UK over the past 15 years which can only be a good thing.  Since 1995 the total number of VAT registered enterprises has increased by 26%.

[Picture credit: jonny.hunter licenced from Flickr]