It looks like the worldwide oil crisis, the global economic downturn and general sluggishness of the local economy is scaring off entrepreneurs.
A revealing research presented by the prestigious Barclays shows that the number of start-ups has taken a 20 per cent downturn during the first half of 2005, compared to figures posted for the same period in 2004. Although the drop is considered significant, financial experts say there is still no cause for alarm. According to Barclays’ director of small business, John Davis, start up figures posted over the last two years has been considerably high. In effect, even with the decreased numbers, the over-all figures are still respectable.
One reason for the continued interest in forming start-up companies — despite the less than perfect economic environment — is that it has become significantly easier. Entrepreneurs and businessmen have received valuable support from company formation experts, who help decrease the stress and complication typically associated with the task.
These experts are removing the guesswork and streamlining the cumbersome paperwork needed to set up a company. In fact, other support services for businessmen are already becoming quite popular even among those who already have a company up and running. These include accountancy services that provide bookkeeping, payroll and other related functions. Outsourcing these functions allows companies to focus on their key business, and maintain a streamlined, cost-effective regular workforce.
In this way, company formation experts have played a large role in encouraging the entrepreneurial spirit, and their popularity among businessmen and entrepreneurs may be an indicator that the number of start-ups will still be healthy despite a sluggish local economy.
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