WORCESTERSHIRE has smashed the record for the number of new businesses launched in the county in a single year, according to new research.

But it's not all good news, because the figures show that for every 10 companies formed, seven are dissolved and despite the rise in start-ups, Worcestershire has the third worst growth rate in England.

Statistics compiled by online company records management system Inform Direct have revealed there were 3,520 companies formed in the county in 2014, up from a previous best of 3,387, bringing the total number of businesses operating in the region to a high of 28,026.

Henry Catchpole, chief executive of Inform Direct, said: “This is clearly an area where fledgling firms are flourishing and where people are starting to make their dreams a reality in the word of business.” There were 843 new companies formed in Wychavon, followed by 602 in Worcester, 593 in Bromsgrove and 540 in Wyre Forest.

Mr Catchpole added that while these areas were doing well for start-ups, they also faced some challenges.

“Growth in companies based in the county stands at 3.8 per cent, which is much lower than the national average of 6.6 per cent and the third worst growth rate in England,” he said. “This is because the number of companies being dissolved each year holds back the growth of total companies based in the county.”

With 2,487 companies dissolved in 2014, it means that for every 10 companies formed, seven are dissolved. Last year in the UK as a whole, 586,784 new businesses were registered with Companies House taking the total number to a record high of 3,509,084. Private limited companies made up more than 95 per cent of all formations.

Mr Catchpole said three main factors were fuelling the growth: the ease and speed with which a company can be started, usually within hours and generally for less than £20, many companies can successfully operate from home and need little more than a website before they can start trading and there are improved channels for accessing capital.