New research from the UK’s insolvency and restructuring trade body R3 has found that more than 10,300 new businesses were set up in the South West this summer.
R3’s analysis of data provided by Creditsafe shows there were 10,318 start-ups in the South West over the summer months – an increase of 2.9 per cent on last year’s figure of 10,031.
Start-up numbers rose steadily in the South West all summer – with 3,337 in June, 3,434 in July and 3,547 in August. This was a contrast to last year when numbers fell from 3,397 to 3,264 between June and July 2022, before rising to 3,370 in August.
The yearly increase in start-ups seen in the South West has been mirrored across almost every UK region and nation, with only Yorkshire and Humberside seeing a decrease in start-up numbers. The largest increases were seen in Northern Ireland (55.8 per cent), Greater London (12.4 per cent) and Scotland (8.6 per cent).
Charlotte May, Chair of R3 in the South West, said, “Start-ups have thrived this summer in the South West as more and more people have launched their own businesses, which will hopefully provide more opportunities for people and supply chains across the region.
“This is welcome news and comes at a time when business confidence in the region is high, as inflation eases and firms look to recruit more staff.”
Charlotte, who is Associate Director for South West and Wales at Manolete, continued, “However, it’s important to note that the first few years of a business’s life can be the most challenging. To minimise the risk of your business running into financial trouble, keep a sharp eye on your finances – and that applies to directors of established businesses as well as newer ones.
“Whether your business is new or not, keeping tabs on your spending and your stock levels, ensuring you have money put aside for unexpected problems, and reaching out for qualified advice as early as you can if you start to become concerned about your business and its finances, are critical when it comes to spotting and addressing signs your business may be struggling or financially distressed.”
She added, “Seeking advice as soon as you start to worry about your business is particularly important as the longer you delay this, the fewer options you have for resolving it, and you have less time to take a decision about your next step than if you’d reached out while your problems were new.”