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Start-up and small business activity is showing signs of recovery, new research indicates.
High street bank lending to small businesses rose by £271m from February to March, while deposits from small businesses increased by £881m.
The figures, published this month by the British Bankers' Association (BBA) suggest that UK start-up activity is performing better than was expected.
"So far we have not seen the contraction in start-up activity we would expect given the scale of economic slowdown," commented Doctor Richard Roberts, head of research at Barclays Bank.
In contrast to this month's figures, start-up activity fell quickly during the downturn of 1990 and 1991.
"From an entrepreneur's perspective, the key difference between this downturn and any previous recession is the emergence and prevalence of new technology that is proving a lifeline for thousands of small businesses across the country," said Xenios Thrasyvoulou of online marketplace PopelePerHour. "You don't need huge amounts of capital or time to start a business in 2009."
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