Phl leads way in new capital
This increase in new business creation is also likely to have been influenced by the greater availability of business lending during 2020
Despite a deep recession, the Philippines had the largest percentage increase in the setting up of new businesses during the crisis period as new projects grew 152 percent in just a year.
This increase in new business creation is also likely to have been influenced by the greater availability of business lending during 2020.
China also led the way in the global study on new business creation, as it created 25 million new businesses during the pandemic, driven by the government’s entrepreneurialism-focused policy, according to London-based international accountancy network UHY.
In the study, nine countries out of 22 saw significant increases in new business creation in 2020 compared to 2019 that included the Philippines and major economies such as the United Kingdom, France, Brazil and India.
Michael Aguirre, founder at UHY M.L. Aguirre & Co., UHY’s member firm in the Philippines, said “2020 saw a huge number of registrations of new online businesses in the Philippines. Our economy is rapidly digitalizing and that is creating greater opportunity for entrepreneurs. The money made available to businesses through government-backed loans has also been helpful to many.
“The next challenge is to lower costs and red tape for new businesses in the Philippines. If that can be achieved, we can create an even more vibrant startup economy,” Aguirre added.
14% rise in UK
The United Kingdom was also among the countries to see the fastest rise in new business creation during the pandemic, with a 14 percent increase in new businesses started in 2020, compared to 2019.
2020 saw a huge number of registrations of new online businesses in the Philippines.
Martin Jones, partner at UHY Hacker Young, UHY’s member firm in the UK, said: “Entrepreneurs in the UK have really used the pandemic and lockdowns as a springboard to start businesses. Covid-19 has created opportunity for people brave enough to identify and capitalize on the huge change we have seen over the last 18 months.”
China saw the number of new businesses it created grow by 1.25 million last year, giving it first place among 22 countries in the study. UHY’s data shows that more than 25 million new businesses were created in China in 2020, up 5 percent on 2019’s figure of more than 23.7 million.
Since 2015, China’s government has signaled a focus on entrepreneurialism by emphasizing its role in the country’s economic strategy, the research noted. In November 2020, the government also stressed the key role small businesses could play in driving China’s post-pandemic recovery.
Entrepreneurship is key
Sun Liqian, director at Zhonghua CPA LLP, UHY’s member firm in China, said: “China has made significant strides in fostering entrepreneurialism over recent years and the pandemic has not been able to slow that.”