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UK Business Creation Drops To Lowest Rate Since 2010, Raising Economic Concerns

by THEFUTURE.TEAM

November 20, 2024

The United Kingdom witnessed its slowest rate of new business creation in over a decade last year, signalling potential challenges for long-term economic growth and productivity. Official data from the Office for National Statistics (ONS), released Monday, showed that 316,000 businesses were started in 2023, a decline from 337,000 in 2022. This dropped the “business birth rate” — the percentage of new businesses relative to the total number of active businesses — to 11.0%, its lowest level since 2010.

Business closures also decreased, with 309,000 shutting down in 2023 compared to 349,000 in 2022, reducing the “business death rate” to 10.8%, the lowest since 2020.

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Economists warn that declining rates of both business creation and closure could negatively impact productivity and innovation. Established businesses often struggle to adopt new technologies or innovate at the same pace as startups.

The ONS recently reported that UK output per hour worked in Q3 2024 was 1.8% lower than a year earlier, with just a 2.0% cumulative increase since the COVID-19 pandemic began. These figures, tied to productivity stagnation, may see revisions as new population data becomes available.

However, there was a positive trend in high-growth businesses. The proportion of firms with at least 10 employees that expanded their workforce by 20% annually for three consecutive years rose to 4.7% in 2023, the highest in five years.

The newly elected Labour government has pledged to make the UK a leader in per-capita economic growth among G7 countries. However achieving this goal may require addressing barriers to business growth and encouraging entrepreneurship beyond small-scale startups, which often have limited productivity impacts unless they scale up.

While the hospitality sector remains a key area for new businesses, the broader startup ecosystem’s growth will be essential to strengthening the UK economy in the years ahead.

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Cyprus Emerges As A Leading Household Consumer In The European Union

by THEFUTURE.TEAM

June 30, 2025

Overview Of Eurostat Findings

A recent Eurostat survey, which adjusts real consumption per capita using purchasing power standards (PPS), has positioned Cyprus among the highest household consumers in the European Union. In 2024, Cyprus recorded a per capita expenditure of 21,879 PPS, a figure that underscores the country’s robust material well-being relative to other member states.

Comparative Consumption Analysis

Luxembourg claimed the top spot with an impressive 28,731 PPS per inhabitant. Trailing closely were Ireland (23,534 PPS), Belgium (23,437 PPS), Germany (23,333 PPS), Austria (23,094 PPS), the Netherlands (22,805 PPS), Denmark (22,078 PPS), and Italy (21,986 PPS), with Cyprus rounding out this elite group at 21,879 PPS. These figures not only highlight the high expenditure across these nations but also reflect differences in purchasing power and living standards across the region.

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Contrasting Trends In Household Spending

The survey also shed light on countries with lower household spending levels. Hungary and Bulgaria reported the smallest average expenditures, at 14,621 PPS and 15,025 PPS respectively. Meanwhile, Greece and Portugal recorded 18,752 PPS and 19,328 PPS, respectively. Noteworthy figures from France (20,462 PPS), Finland (20,158 PPS), Lithuania (19,261 PPS), Malta (19,622 PPS), Slovenia (18,269 PPS), Slovakia (17,233 PPS), Latvia (16,461 PPS), Estonia (16,209 PPS), and the Czech Republic (16,757 PPS) further illustrate the disparate economic landscapes within the EU. Spain’s figure, however, was an outlier at 10,899 PPS, suggesting the need for further data clarification.

Growth Trends And Economic Implications

Eurostat’s longitudinal analysis from 2019 to 2024 revealed that Croatia, Bulgaria, and Romania experienced the fastest annual increases in real consumer spending, each growing by at least 3.8%. In contrast, five member states, with the Czech Republic experiencing the largest drop at an average annual decline of 1.3%, indicate a varied economic recovery narrative across the continent.

This comprehensive survey not only provides valuable insights into current household consumption patterns but also offers a robust framework for policymakers and business leaders to understand economic shifts across the EU. Such data is integral for strategic decision-making in markets that are increasingly defined by evolving consumer behavior and regional economic resilience.