Almost 11 businesses were being created on average in the city every day.
Analysis of Companies House data reveals that 1,931 businesses were registered in Wolverhampton between January and June – an increase of 119 per cent from 882 in the same period in 2019.
The research for small business lender iwoca’s Small Business HotSpots UK 2021 list found the total number of businesses registered in the UK was more than 340,500
Wolverhampton saw the fifth highest total number of new firms registered out of all West Midlands local authorities, behind Birmingham (7,442 – up 43 per cent), Worcestershire (4,217 – up 56 per cent), Staffordshire (3,647 - up 65 per cent) and Warwickshire (2,410 – up 25 per cent).
Sandwell's increase was 67 per cent from 1.031 to 1,720 with Walsall at 50 per cent (814 to 1,221) and Dudley at 29 per cent (1,130 to 1,458).
Telford and Wrekin was up 15 per cent from 431 to 494 and the rest of Shropshire rose nine per cent from 812 to 889.
The West Midlands had the fourth highest number of new businesses out of all UK regions, with 30,478. London topped the list with 120,338
The sharp increase in the number of business registrations points to a rise in entrepreneurship as people reassess their work priorities.
The number of people on furlough in Wolverhampton dropped by 56 per cent over the first half of 2021, and by 58 per cent across the West Midlands. Whilst many will have returned to their old jobs, the Companies House data suggests that a significant number have decided to start their own business.
The creation of these new businesses will also provide additional job opportunities and may have contributed to the number of vacancies increasing by 104 per cent in the region since the start of the year.
Christoph Rieche, iwoca's chief executive and co-founder, said: “It is fantastic to see the creation of so many businesses during the first half of this year, they are testament to the entrepreneurial spirit which characterises our vibrant economy.
“Many of these businesses will be unnecessarily constrained by cashflow. At iwoca we turn cashflow into a superpower enabling them to grow faster and worry less. We look forward to working with many of them.”