THE number of businesses in Essex reached a record high during 2021 despite continuing economic challenges resulting from the pandemic.

In total, the number of registered companies in Essex rose from 137,310 at the end of 2020 to 141,948 at the end of 2021, an increase of 3.4 per cent.

The statistics come from the Inform Direct Review of Company Formations using data from Companies House and the Office for National Statistics (ONS).

John Korchak, operations director at Inform Direct, said: “The construction sector saw the largest number of new companies (2,742) which may be the result of pent-up demand after the lockdowns of 2020 and early 2021.

“This was followed by retail with 2,350 new incorporations which may signify people looking to spend their income in different ways as a result of widespread restrictions on travel and entertainment.

“Reaching a new record number of companies demonstrates an active economy with entrepreneurs motivated to invest in new businesses which meet current and emerging demands for goods or services.”

Southend formed the highest number of new businesses at 2,413, followed by Thurrock’s 2,077 and Basildon’s 2,005.

To see a more detailed picture of company formations in Essex, visit bit.ly/348PAcn.