Thousands of companies were founded in the West of England in the first three months of the year, new research has revealed.
A total of 11,020 businesses were set up in the region in January, February and March, according to insolvency and restructuring trade body R3. The figures, which are based on an analysis of data provided by Creditsafe, show that start-up numbers rose 62.8% between December 2021 (2,624) and March 2022 (4,273).
The South West also had the third-highest percentage increase in start-ups across the UK regions and nations between January and March, seeing a rise of 30.7%. Ahead of the South West was Wales, which saw a 46.8% increase, and the West Midlands, whose start-up numbers rose by 328.1%.
Across the UK, there has been an increase in start-ups in almost every sector over the period, with significant gains in industries that suffered as a result of Covid restrictions such as accommodation and food services (23.6% increase), construction (21.3% increase) and wholesale and retail (17.5% increase).
Charlotte May, associate director for South West and Wales at insolvency litigation financing firm Manolete in Bristol, and chair for R3 in Wales, said: “It’s fantastic to see that 2022 has sparked a wave of entrepreneurial activity in the South West. With the end of Covid restrictions, there is growing confidence in the economic recovery, as more people clearly believe the market can support new businesses.
“It is especially encouraging to see entrepreneurism and creativity shine through in sectors like hospitality and others that were hit the hardest by the pandemic and its fallout.”
Ms May said while the number of start-ups was "encouraging" businesses were facing increased creditor pressure, low consumer spending and rising inflation, all of which would have an affect on margins and finances.
“Anyone thinking about setting up a new business should not absolutely not be discouraged by this, but should certainly be prepared for their first year to be a challenging one," she added. "The first few months of trading are always tough and the current economic pressures will only amplify this."
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