NOW is the right time to set up a small business if results of recent research are anything to go by.

The region saw an 18 per cent rise in the number of small business start-ups last year. In figures, 60,000 businesses were set up in 1997, compared to 51,000 in 1996.

And although London showed the highest level of growth, the increase was reported across the UK with only Wales suffering a fall in business start ups.

It is thought the growth in the capital city is due to the recent boom in consumer spending levels which in London, where 3.5 per cent of the population earn more than £50,000 a year, has been particularly evident.

The current strength of the business and computer service industries, which have been traditionally based in London, is also likely to have influenced start up levels.

Construction activity within the area has also played a major part in the 40 per cent increase.

There has been a 40 per cent increase in small firms starting up in the building trade across Britain in 1997.

Barclays Bank head of small business in Bexley and Dartford, Bob Chittenden, said: "This growth could be attributed to the construction activty generated by the Millennium and Lottery cash projects and numerous new City office developments as well as London's growing reputation as a global financial centre."

However, recruitment could become a problem for small firms looking to employ skilled non-manual labour during 1998, with full employment levels now being achieved in many prime commuter areas and lower than average pay increases in the London area over the past two years."

But it is thought that the London economy will continue to grow faster than anywhere else in the UK this year.

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