The economy is caught between a “pincer movement” of company closures and a collapse in start-ups, academics have warned.
The Enterprise Research Centre said that the onset of the coronavirus pandemic had coincided with a “surge in limited companies going bust being mirrored by a drop in firms setting up”.
An analysis of Companies House filings found that 61,472 limited companies folded between the start of March and mid-April, with a parallel drop in new ventures being registered.
The number of companies going out of business was 70 per cent up on last March, while the 14,270 new companies incorporated was down 23 per cent on the same period last year.
The research centre, a joint venture from the Warwick and Aston university business schools,
