A record number of new companies were formed in Bristol, Gloucestershire and Somerset last year despite the economic challenges posed by the coronavirus pandemic, according to new analysis.
Somerset saw a third successive year of record company formations, with just under 6,500 new businesses registered in the county in 2020 - an increase of 6.5% on the previous year.
North Somerset was the area with the highest number of new businesses, followed closely by Bath and North East Somerset and Taunton Deane.
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In contrast, just under 3,900 companies were dissolved, meaning that a little over 55,000 companies were registered in Somerset by the end of 2020, an overall rise of 6%.
Gloucestershire posted back-to-back increases, with 6,400 new companies registered - up 7.5% on 2019’s numbers.
More than 1,000 new firms were formed in Cheltenham, Gloucester and South Gloucestershire. These helped to contribute to a 5% growth in the total number of companies in the region.
Bristol also saw a record high for business formation in 2020 with just over 5,500 new companies registered, representing a rise of 10.3%.
Almost 2,800 companies were dissolved with a total of 36,200 businesses registered in Bristol by the end of 2020, a 7.8% growth on the number firms in 2019.
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The majority of the companies formed in both Somerset and Bristol came from the wholesale and retail trade sector, with over 750 and 630 in the two areas respectively.
Bristol also saw a growth of firms in the arts and entertainment services, while in Somerset the professional scientific and technical field saw the second highest number of new companies.
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The figures, published by company secretarial software specialists Inform Direct, are based on data from Companies House and the Office for National Statistics.
The damage done to business in the South West may not be fully represented, however, as Companies House put most dissolutions on hold between April and August following the start of the first national lockdown.
Additionally, the figures do not account for the number of new enterprises that have been set up on a short-term basis. John Korchak, Inform Direct’s operations director, said that workers starting new individual ventures after losing their jobs could be contributing to the rise.
Mr Korchak said: “It is excellent news to see that Bristol and Somerset have achieved a record year for new company formations during 2020 despite the unprecedented uncertainties brought by Covid-19.
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“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.”
Mr Korchak urged caution against optimism for positive trends in the number of firms in 2021, with Government financial support for business set to be withdrawn later in the year.
Chancellor Rishi Sunak has extended the furlough scheme until the end of April while business rates relief will end after March 31.
Mr Korchak said: “2020 was a year like no other for 海角视频 businesses. Although we can look forward to a brighter future with the vaccination programme, there remain unknown factors such as how quickly the economy will recover and of course the impact of Brexit."
The South West figures are set against a national picture which saw a record-breaking 780,000-plus new businesses formed and the lowest number of company dissolutions (almost 420,000) since 2015.