Record number of businesses established in Lincolnshire in 2021

A record number of businesses were established in Lincolnshire during 2021, new figures have shown.

Last year was a record year for new businesses, new data has shown.
Last year was a record year for new businesses, new data has shown.

In all, 6,903 new companies were registered in the county last year compared to 6,475 during 2020, which, at that time, was a new record.

It brings the total number of registered companies in Lincolnshire to 50,076, up by 4.2 per cent from 48,061 at the end of 2020.

The statistics come from the Inform Direct Review of Company Formations using data from Companies House and the Office for National Statistics.

South Kesteven formed the highest number of new businesses (1,283), followed by North East Lincolnshire (1,014) and North Lincolnshire (981).

Boston was the smallest (421), but the tally was up on previous years (340 in 2020 and 381 in 2019).

John Korchak, operations director at Inform Direct, said: “It is excellent news to see that Lincolnshire has achieved a record year for new company formations during 2021 despite the continuing challenges of the pandemic.

“The retail sector saw the largest number of new companies (698) 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 land transport with 693 new incorporations.

“The record number of new company formations 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 per cent increase on the total of 4,837,426 at the end of 2020.

While 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, a spokesman for Inform Direct said.