Number of companies in Northumberland hits record high

Figures show that the number of businesses in Northumberland rose by nearly 3% in 2021 despite ongoing pandemic challenges.
John Korchack, operations director at Inform Direct.John Korchack, operations director at Inform Direct.
John Korchack, operations director at Inform Direct.

The total number of registered companies in Northumberland rose to 11,895, up from 11,575 at the end of 2020, representing an increase of 2.8%.

During the year 1,421 new businesses were registered in the county.

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The statistics come 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 Northumberland has achieved a record high for the number of businesses in the county despite the continuing challenges of the pandemic.

“The retail sector saw the largest number of new companies (125) 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 food and beverage services with 122 new incorporations.

“Reaching a new record number of companies demonstrates an active economy with entrepreneurs motivated to invest in new businesses which meet current and emerging demands for goods or services.

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"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% increase on the total of 4,837,426 at the end of 2020. This continues a ten-year trend which shows the number of businesses in the UK doubling in that period.

Whilst 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 have suffered as behavioural and spending patterns have changed.

To see a more detailed picture of company formations in Northumberland – including a full local breakdown, click here

To see the report, click here