Number of businesses in Derbyshire hits record high despite Covid challenges

The number of new businesses in Derbyshire reached record levels in 2021 despite the difficulties caused by the pandemic.

Thursday, 27th January 2022, 3:43 pm
Updated Thursday, 27th January 2022, 3:44 pm

Latest figures show that the number of registered companies in Derbyshire rose to 53,394, up from 51,742 at the end of 2020- representing an increase of 3.2%.

After Derby, Erewash was the county’s business hotspot, with 886 new companies launched. In Amber Valley, the number stood at 850, followed by Chesterfield with 604 and High Peak with 524.

North East Derbyshire’s figure was 458, and at the bottom of the rankings were the Derbyshire Dales and Bolsover, which had 440 and 349 respectively. Derbyshire was ranked 26th out of 47 counties surveyed for business growth, with 7261 new companies being registered overall.

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John Korchak, from Inform Direct, said the figures were promising for the business community in Derbyshire.

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 Derbyshire 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 with 1600. This 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 property with 1144 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. 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.”

Whilst company formations grew, the number of dissolutions across the UK- 606,912 during 2021- also 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 that businesses thriving pre-Covid have suffered as behavioural and spending patterns have changed.