According to latest figures, the number of new businesses established in Cornwall increased during 2020 – hitting a new record high for the third year in a row.
Despite the considerable economic challenges posed by the Coronavirus pandemic, 2,951 new companies were registered in the Duchy compared to 2,948 during 2019.
This brings the total number of registered companies in Cornwall to 23,804, up from 23,037 at the end of 2019, which equates to 3.3% growth.
The statistics are taken from the Inform Direct Review of Company Formations using data from Companies House and the Office for National Statistics.
John Korchak, operations director at Inform Direct, said: “It is excellent news to see that Cornwall has achieved a record year for new company formations during 2020 despite the unprecedented uncertainties brought by Covid-19.
“Many of the new company formations are in the retail sector, with a large number of new businesses set up to sell goods online or locally, thereby taking advantage of customers’ changing shopping habits.
“Secondly, the effect of the pandemic and national lockdowns means that sadly some existing businesses have folded and employees made redundant, and we see many of those people setting up new ventures on their own as an alternative way to earn a living.”
Alongside Cornwall’s achievement, the UK as a whole saw a record-breaking
780,766 new businesses formed, compared to 690,763 in 2019. The overall number of UK companies also continued to grow to 4,837,426, an 8.2% increase on the total of 4,471,008 at the end of 2019.
The number of company dissolutions across the UK – 418,427 during 2020 – was the lowest since 2015. It remains open to debate whether this positive trend will last, especially when Government support for businesses is withdrawn. New enterprises set up during the pandemic might also be short-lived, as people return to full-time employment or struggle to take the business to the next level.