The brave entrepreneurs founding new firms from the ashes of Covid

British businesses have faced some of their darkest days this year, as Covid-19 lockdown restrictions have battered the economy.

In a poll conducted before the November lockdown, one in seven enterprises told the Office for National Statistics they had little or no confidence of surviving the next few months.

Meanwhile, 1.69 million people were unemployed by the end of October, according to the latest Government data.

Bouncing back: Analysis of Companies House figures suggests 85,000 more new businesses will have been set up by the end of this year compared with 2019

But although times may seem bleak, 2020 has seen a surge in entrepreneurs setting up new ventures.

Analysis of Companies House records suggests 84,758 more new firms will have been set up by the end of this year compared with 2019.

Consultancy firm SHL, which studied the data, found the 12.3 per cent increase was the highest since 2011.

The figures should be viewed with caution, however, as some may relate to fraudulent companies set up by criminals trying to cash in on Government help.

But experts say many of the new businesses will have been set up by the newly unemployed.

Iain Wright, director for business and industrial strategy at the Institute of Chartered Accountants in England and Wales, says: ‘History shows that following any economic downturn, the number of people starting a business rises sharply.

‘It may be that, after a period of reflection during lockdown, people have thought hard about a business idea and decided to go for it.’

Here, Money Mail meets three brave entrepreneurs who founded new businesses in 2020 . . .

Beauty business is really delivering 

Claudia Gwinnutt's company, Circla, sells skincare, shampoos, conditioners and body lotions in glass and aluminium bottles

Claudia Gwinnutt’s company, Circla, sells skincare, shampoos, conditioners and body lotions in glass and aluminium bottles

While some entrepreneurs may be driven by the dream to be their own boss, or to sell their companies for millions in the future, others set up businesses for ethical reasons.

Claudia Gwinnutt, 30, had worked for Barclays for ten years, but found a new niche during lockdown when she founded a milkround-style beauty delivery service in the capital, after piloting it in her home borough of Islington, North London, in June. 

Her company, Circla, sells skincare, shampoos, conditioners and body lotions in glass and aluminium bottles that are re-used once they are empty.

The items are delivered by bicycle or electric vehicle – to avoid pollution -with Claudia rising at 5am each day to do most of the rounds herself.

Customers are encouraged to return their old bottles, with 50p in reward points as an incentive for each item. 

These are then washed and re-used for future orders. Since launching the business in October, Claudia has amassed 380 regular customers. And, last month, she took £4,500 in sales.

But while she is beginning to enjoy success, she says many people told her the venture would never work.

Claudia adds: ‘I’d tell anyone who wants to start their own business to be prepared to hear ‘no’ a hundred times.’

The teenager offering an online lifeline 

Sam Dunn set up digital marketing agency, Insight Social, earlier this year, when he was only 17 and studying part-time for his A-levels.

He has always enjoyed using social media, such as Twitter and Instagram, and as lockdown restrictions hampered firms’ ability to operate, his online services proved a lifeline.

Tech whizz: Sam Dunn set up digital marketing agency, Insight Social, earlier this year, when he was only 17

Tech whizz: Sam Dunn set up digital marketing agency, Insight Social, earlier this year, when he was only 17

Now 18 and making £2,000 a month, he is keen to expand his business and employ others.

Sam, who lives in Swinton, North Yorkshire, with his mother, Catherine, and father, Ian, says: ‘It’s been great helping businesses in my local area, and making money in the process.’

The number of teenagers starting their own business has risen eightfold in the past decade, from 500 in 2009 to more than 4,000 in 2019, according to mutual OneFamily.

Even Princess Eugenie is a fan

Online businesses saw an 88 per cent increase in growth this year – with 12,490 new companies registered, research from consultancy firm SHL shows.

New clothing companies have also soared in growth by 55 per cent – a sector which mother-of-three Claire Gleave was keen to join.

Claire, was previously a marketing director for private bank Coutts & Co, but she left her job five years ago when she had her first child.

Claire Gleave, was previously a marketing director for private bank Coutts & Co, but she left her job five years ago when she had her first child

Claire Gleave, was previously a marketing director for private bank Coutts & Co, but she left her job five years ago when she had her first child

As a keen runner, she struggled to find stylish gym clothes to wear when she was pregnant.

Claire, who lives in the Cotswolds, says: ‘I would often end up having to pull on my husband’s T-shirt, so I knew there was a gap in the market.’ 

After sketching out ideas for colourful leggings and sports bras, she set up funding for the venture by withdrawing £20,000 from an Isa, and taking out a £25,000 small business loan. She launched the business in June and, fortunately, Natal Active is thriving.

Even Princess Eugenie, who is expecting her first baby in the New Year, has praised the designs, describing them as ‘perfect’ in a letter, after she was sent some leggings.

Claire says lockdown may even have helped her company — because it has helped her network with personal trainers online.

‘When I was at Coutts, I would often meet entrepreneurs who had sold their successful businesses, so it’s been wonderful finally to start a venture of my own,’ Claire says.

How the Mail’s £5m helped

More than 1,000 small businesses benefited from £5 million worth of free advertising this year, thanks to the Mail.

In May, the Daily Mail and General Trust (DMGT) invited small firms to apply for free advertising space in Britain’s best and most read newspapers.

It initially aimed to give 1,000 firms advertising worth £3,000, but ended up supporting 1,600 companies. The fund was open to businesses that had been established for more than six months, employed fewer than 150 people and had a turnover of below £6 million a year.

Successful applicants received four print and two online adverts across publications including the Mail, The Mail On Sunday, Mail Online, the i newspaper and Metro.

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.