‘Debut director’ numbers soar - Palmers Solicitors

‘Debut director’ numbers soar

The number of first-time business directors in the UK is at an all-time high, according to new research. Data released by information provider Experian on 5 December revealed that 515,000 businesses were created in the UK last year, up 8.9 per cent from 473,000 in 2012.

Tthe proportion of first-time, or debut, directors also rose, to 304,000 in 2013 compared to 270,000 in 2012 – an increase of 12.6 per cent.

Experian said that as well as a lower level of business experience, debut directors were starting out in business with lower levels of investment than ever before.

Max Firth, managing director for Experian Business Information Services, said: “These figures suggest a shift in how we should view the average UK entrepreneur. It’s not all high-tech start-ups and Dragons’ Den-style big ideas.

“An increasing proportion of new business directors are making the most of the lower start-up entry levels; grabbing a mobile phone, a laptop and a flexible workplace, and creating their own jobs and their own opportunities.

“While this increasing population of debut directors should be celebrated, there’s much they can do to improve their chances of success. Some may still lack the experience, capital and contacts needed to survive those first few tricky years. So it’s crucial for young entrepreneurs to tap into business support networks for advice and they shouldn’t underestimate the value in partnering with a more experienced director if they can.”

BJ Chong, head of the Company Commercial department at Palmers, said: “New directors may also find it helpful to access expert legal advice, to assist on issues such as:

  • advice on the legal duties of a director,
  • what a company can or cannot legally do,
  • shareholder agreements,
  • shareholder rights,
  • terms and conditions of business,
  • contracts and agreements and
  • intellectual property matters.

“We provide comprehensive company law services and our employment law specialists can provide expert advice to help new employers understand and comply with their legal responsibilities towards their employees. For more information, please contact us.”