Edgware, London -- (SBWIRE) -- 08/23/2011 -- The announcement last week of second-quarter growth provides some encouragement as to the prospects of the UK economy. Coupled with the Government’s focus on facilitating business start-ups, it seems that 2011 may have a number of beneficial conditions for newly incorporated companies.

In recent months a host of government actions should provide encouragement to those individuals that are considering starting a small business in the UK. At the heart of the current Conservative government’s policy is a belief that economic growth can be achieved through the vessel of small business. In addition to the headline-grabbing projects and commitment to cut red-tape, they have clearly shown there intention to reduce the rates of Corporation Tax.

The government tactic appears to be an attention on two areas: incentivising individuals to start a new business, and making it possible for them to do so. Project Merlin is one project, involving four of the UK’s biggest banks, which focuses on the second of these two priorities. The deal, agreed in February, aims to get the banks lending more and especially to small businesses. Recent reports have shown that through the banks, £100 billion of credit has been available to UK businesses under Project Merlin, which should provide encouragement for those contemplating company formations in 2011.

Although recent economic growth figures may seem slow, there is still room for positivity if you want to start your own business. Growth may have been slow, but it is positive.

Recent levels of unemployment have been high in the UK, and if you have been affected it may be the perfect opportunity to become your own boss. If you have found yourself out of work, now may be the ideal time to start the venture you always contemplated. Furthermore, there are hundreds of qualified or experienced individuals currently looking for work.

After incorporation, a company needs staff. The UK currently finds itself in the rare situation where experienced individuals need work.

Additionally, recent tax schemes by the government have looked to make it easier for new start-ups to employ. For the next few years, businesses locating outside of London and the South-East are entitled to exemptions of up to £5,000 on National Insurance payments. This applies for each of the first ten employees that they hire. Nick Tagg, Director at Wisteria Chartered Accountants explains; ‘the government are currently trying very hard to incentivise business start-ups. The new National Insurance scheme brought in is potentially highly beneficial to anyone who takes advantage of it. The downside is that these benefits don’t extend to the South East, where unemployment is still very significant.’

Recent economic conditions have also the potential to provide a cost-benefit to your new business. With interest rates at record-low levels, you may find that a small business loan may cost you less now than in the future. Many expect interest rates will stay at 0.5% until the end of 2011, suggesting now may be the ideal time to try and take advantage of cheaper credit, before levels begin to rise again.

If the government plans and figures don’t convince you, perhaps a global market will. With the Olympic Games just around the corner, what better time is there to form your company in the UK? This time next year, London and the UK will play host to the world, in one of the most anticipated events of a life time. The games will bring a flow of positivity, tourism, and spending into the UK that all entrepreneurs will want to be a part of.

It is a combination of these factors which mean that 2011 may just be the right time to start your own company.