The report showed that there has been a 3.4 per cent rise in the number of active companies in the first six months of this year, taking the total number of active companies in the UK from 2.73 million at the end of 2012 to 2.82 million at the end of the first half of this year.

The report revealed that the proportion of high-growth companies in the UK – mid-sized SMEs recording an increase in turnover of at least 33 per cent over the past three years, as well as 10 per cent year on year growth for a minimum of two of these years – has also shown an impressive increase, from 17.4 per cent in 2011 to 20.5 per cent in 2012. This means that one in five of these companies can now be defined as high-growth.

The report looked at the pace and strength of entrepreneurial activity across regions of the UK and Ireland, finding that London is home to the highest percentage increase in the total number of enterprises in the year between March 2012 and March 2013, up 3.5 per cent from an already high base and representing an additional 12,000 businesses. Yorkshire & Humberside and the Midlands have the largest proportions of high-growth companies, with nearly one in four businesses classed as high-growth in each region.

“Entrepreneurs are early adopters by nature and quick to seize market opportunities, meaning that entrepreneurial activity is often viewed as a leading economic indicator. As such, the study of their activity is increasingly important. As British entrepreneurs are on target to start more than half a million new businesses this year alone, it is clear to see that new businesses – and the individuals that set them up – are becoming an economic ‘tour de force’,” Richard Phelps, managing director, Barclays Wealth and Investment Management.

The “new funding landscape”

The report also explores alternative funding sources for businesses that are both starting up and looking to grow, such as crowd-funding and angel investors. However, when questioned, the majority of entrepreneurs (84 per cent) had relied on existing funds and savings when setting up their business, while one in 10 (12 per cent) had used credit card funds, and a similar number (11 per cent) had borrowed from friends and family.

It is also possible to set up a successful business on a shoestring budget, the report found. Nearly half (49 per cent) of entrepreneurs set up their business with under £2,000 ($3225.20), while almost one in 10 (8 per cent) needed no start-up funding whatsoever.