{"id":10890,"date":"2021-07-16T08:40:06","date_gmt":"2021-07-16T07:40:06","guid":{"rendered":"https:\/\/www.uhy-fay.com\/china-created-million-businesses\/"},"modified":"2022-08-23T11:52:02","modified_gmt":"2022-08-23T10:52:02","slug":"china-created-million-businesses","status":"publish","type":"post","link":"https:\/\/www.uhy-fay.com\/en\/blog\/china-created-million-businesses\/","title":{"rendered":"China Created 1.25 Million More New Businesses During Covid Pandemic"},"content":{"rendered":"<h2>China created <u>1.25 million more<\/u> new businesses during Covid pandemic \u2013 leading the world in new business creation<\/h2>\n<ul>\n<li>New business creation <u>rises<\/u> 6% worldwide despite effects of pandemic<\/li>\n<li>United States see sharp growth in new businesses as e-retail takes off<\/li>\n<li>Risk of two-speed system emerging \u2013 some European economies being left behind<\/li>\n<\/ul>\n<p>China saw the number of new businesses it created grow by 1.25 million in 2020, giving it first place among 22 countries in a study of new business creation around the world during the Covid-19 pandemic by UHY, the international accountancy network.<\/p>\n<p>UHY\u2019s study shows that over 25 million new businesses were created in China in 2020, up 5% from the over 23.7 million created in 2019. Since 2015, the Chinese government has signalled a focus on entrepreneurialism in China by repeatedly emphasising its role in the country\u2019s economic strategy. In November 2020, the government also stressed the key role to be played by small businesses in driving China\u2019s recovery from the pandemic.<\/p>\n<p>Liqian Sun, Director at Zhonghua CPA LLP, UHY\u2019s member firm in China, comments:<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p>\u201cChina has made significant strides in fostering entrepreneurialism over recent years and the pandemic has not been able to slow that. Enterprise has been a key element of China\u2019s economic strategy over the last five years and these figures show how that approach is bearing fruit. There are an astonishing number of microbusinesses being created every year in China.\u201d<\/p><\/blockquote>\n<h2><u>United States sees sharp percentage growth in new business creation<\/u><\/h2>\n<p>However, says, UHY, the United States saw a much larger increase in new business creation in percentage terms. The US saw 4.4 million new businesses created in 2020, a sharp 27% increase on 3.5 million businesses created in 2019 (see table below).<\/p>\n<p>UHY says that Covid-19 has triggered a wave of entrepreneurialism in many countries including the US as people were forced out of work or furloughed due to the effects of the pandemic. Industries such as online retail have seen particularly strong surges in new business registrations as consumer behaviour was forced to change by lockdown restrictions.<\/p>\n<p>This increase in new business creation is also likely to have been influenced by greater availability of business lending during 2020.<\/p>\n<p>Dennis Petri, Chair of UHY International, comments: \u201cThe surge in new business creation in the United States over the past year has been remarkable. Some of this will be down to necessity \u2013 people losing jobs and striking out on their own due to a lack of other options. But much more will be entrepreneurs seeing opportunity amid the disruption of the pandemic, particularly in online retail.\u201d<\/p>\n<p>Nine countries of 22 in the study saw significant increases in new business creation in 2020 compared to 2019, including major economies such as the United Kingdom, France, Brazil and India. The largest percentage increase was seen in the Philippines, where new business creation grew 152% in just a year.<\/p>\n<p>Michael Aguirre, Founder at UHY M.L. Aguirre &amp; Co, UHY\u2019s member firm in the Philippines, comments:<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p>\u201c2020 saw a huge number of registrations of new online businesses in the Philippines. Our economy is rapidly digitalising and that is creating greater opportunity for entrepreneurs. The money made available to businesses through government-backed loans has also been helpful to many.\u201d<\/p>\n<p>\u201cThe 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.\u201d<\/p><\/blockquote>\n<h2><u>Risk of two-speed system emerging as some European economies are left behind<\/u><\/h2>\n<p>However, says UHY, there is a risk of a two-speed system emerging in which some European economies see much lower rates of new business creation. The 13 countries in UHY\u2019s study which saw new business creation fall in 2020 is dominated by European economies, including Spain, Italy, Germany and Poland.<\/p>\n<p>Across the 11 European countries in UHY\u2019s study, 3.27 million new businesses were started in 2020, a decline of 1.6% from the 3.32 million new businesses created in 2019. This compares to a 7.2% increase across the 11 non-European countries in the study.<\/p>\n<p>Adds Dennis Petri:<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p>\u201cAs the Covid recovery accelerates, economies worldwide need new business creation to drive economic growth. European governments should be looking at their tax policies to ensure they are doing everything they can to empower entrepreneurs to grow new businesses, create employment and increase their tax base.\u201d<\/p><\/blockquote>\n<h3><u>UK sees record new business creation during pandemic<\/u><\/h3>\n<p>UHY says that the United Kingdom was among the countries to see the fastest rise in new business creation during the pandemic, with a 14% increase in new businesses started in 2020 compared to 2019. It adds that data from the country\u2019s tax authority show that more new businesses were created in March 2021 than in any month on record.<\/p>\n<p>Martin Jones, Partner at UHY Hacker Young, UHY\u2019s member firm in the UK, comments: \u201cEntrepreneurs 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 capitalise on the huge change we have seen over the last 18 months.\u201d<\/p>\n<p>\u201cWe now look back on the last recession as a period where many of the UK\u2019s leading tech and fintech businesses were started. In a decade it\u2019s likely we will see the pandemic period as a similarly crucial period for entrepreneurialism.\u201d<\/p>\n<h3><u>China leads the way for new business creation during the pandemic \u2013 over 25 million new businesses started in 2020<\/u><\/h3>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-14066 aligncenter\" src=\"https:\/\/www.uhy-fay.com\/wp-content\/uploads\/2022\/08\/cuadro-300x229.png\" alt=\"\" width=\"576\" height=\"440\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China created 1.25 million more new businesses during Covid pandemic \u2013 leading the world in new business creation New business creation rises 6% worldwide despite effects of pandemic United States see sharp growth in new businesses as e-retail takes off Risk of two-speed system emerging \u2013 some European economies being left behind China saw the&#8230;<\/p>\n","protected":false},"author":4,"featured_media":8938,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[49],"tags":[],"class_list":["post-10890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>China Created 1.25 Million More New Businesses During Covid Pandemic | UHY Fay &amp; 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