21 Sep 2021 11:02 AM

Covid-19 has been typically associated with the negativity of downturns, losses and business closures – on a positive flip side, it’s also resulted in the creation of a new breed of budding entrepreneurs.

For some dormant entrepreneurs ideas which were in the pipeline had the space to come to fruition. Spare time during lockdowns, furlough and redundancy was channelled into identifying ventures and setting up businesses. Over 800,000 new incorporations were formed from the year 2020 to 2021, which is the highest number of incorporations in any one year on record, according to statistics released by gov.uk. 

This boom is additionally driven by the rapid change in consumer habits and needs, spurring an excessive demand for IT based solutions – insightful entrepreneurs took advantage of this opportunity to adapt their ventures. Businesses set up range from online fitness classes to baking supplies, from provision of e-books to online educational workshops.

Considering the nature of services provided and owing to remote working, these companies have had the advantage of minimal infrastructure costs; and manageable advertising costs, thanks to the use of social media that has proved to be a very effective means of directly marketing to the end customer.

It will be interesting to see how businesses set up during the pandemic will adapt to changing consumer behaviour, now that worldwide economies are opening up and people are returning to offices. Entrepreneurs will need to evolve and to keep up with consumer needs and want for longer term survival.

If you are looking to set up a new business and need assistance in drafting a business plan or structuring your organisation, we’re here to help, please contact our corporate finance team.