THE Managing Director of JF Hornby & Co has expressed his dismay at a dramatic fall in the number of entrepreneurs taking the plunge and starting up.
Paul Hornby has noticed a sizeable drop in the number of new businesses emerging.
He blames this on the economic climate, and successive governments which he believes have not been business or entrepreneur friendly.
Paul said: “Nobody starts a business because they want less security, more stress and longer hours, although those things come with the territory. They do it because they believe they can build something worthwhile and be rewarded for the risks they take.
“What we’re seeing now is a growing number of people questioning whether that equation still stacks up.
“The costs, responsibilities and tax burden associated with running a business continue to increase, while many of the benefits that encouraged entrepreneurship have been scaled back.
“That’s not a criticism of any one policy in isolation. But when you add everything together it does influence behaviour. From where I sit, it’s understandable that fewer people are choosing to take that first step into business ownership.”
Recent data points to a slowdown in business formation, with the number of new companies declining across much of the UK.
In the first three months of 2026, the UK recorded its weakest quarter for business creation since records began in 2017. ONS data shows that 78,655 new businesses were launched, down 8% on last year.
During the 2024/25 financial year there were 801,864 company incorporations; a drop of 10% compared with the previous year.
And in the first half of 2025, the number of new businesses registered fell 21% on the same period in 2024. The North West was the second-best-performing region, but still saw a 10% decline.
Image: Nksingh Singh
Paul said: “The national and regional figures paint a bleak picture – and it is one I am seeing repeated here in Cumbria.
“At some point there needs to be a recognition that wealth, jobs and growth do not appear by accident. They are created by people willing to take risks. If we continue to make those risks harder to justify financially, we shouldn’t be surprised when fewer people decide to take them.
“If we want a strong economy, we need a steady pipeline of new businesses coming through. Encouraging entrepreneurship isn’t about giving people an easy ride. It’s about creating the conditions where hard work, investment and risk-taking are properly rewarded. Without that, we risk undermining the very people who drive economic growth in the first place.”
Paul was awarded the MBE in the 2025 New Year’s Honours List, for services to philanthropy and the communities of Barrow-in-Furness and south Cumbria. In 2015 he created the JF Hornby Foundation, which has given more than £400,000 to charities, good causes and community groups.
In 2016 he founded the Hornby Academy. This has supported many school leavers on the path to chartered accountant status, providing a fully funded alternative to university.
Paul is also chairman and co-owner of Barrow AFC.
