Less than £5,000 in capital is required to set up a recruitment agency.

Setting up a recruitment agency is an undertaking that people can go into without necessarily requiring a lot of capital, those thinking of walking down this route will be glad to hear.

Recruitment professionals are in agreement that such a company can be set up with less than £5,000 in capital, which should be an encouraging thing for peers toying with such an idea.

According to industry insider Derek Field, who was sharing his views on peer-to-peer business site LinkedIn, all that is required is "a client or two, a PC, internet connection and some hard work, determination and a bit of common sense".

Responding to the same thread, Sharon Kissack said she managed to set up one with less than £5,000, but added that recruiters "need the ability to work long hours and be good at nurturing relationships".

Recruiters can also take confidence from the fact that the number of self employed individuals increased over the last two years despite the economic climate, according to Kensington Mortgages.

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