Tens of thousands of new companies were established in South West England last year despite tough economic conditions, new research has revealed. More than 40,000 businesses were founded over the year, the report from insolvency and restructuring trade body R3 found, with an average of 3,341 firms created each month..
The first quarter saw the highest number of new start-ups registered, with 11,020 new firms founded between January and March, followed by 10,337 in the second quarter, 9,736 in the third and 9,003 in the fourth.
Charlotte May, chair of R3 in the South West, said: “Despite severe economic headwinds, entrepreneurialism is clearly still flourishing in the South West, with over 40,000 new businesses set up last year. While this is great news, the first few years of a business’s life are typically the most challenging, and it’s really important its directors are aware of the signs of financial distress and act on them as soon as they show themselves.
The news follows a report that found the number of South West companies collapsing into administration last year jumped by more than half as rising inflation, weaker trade and geopolitical uncertainty continued to put businesses under pressure.
A total of 100 companies in the West of England fell into administration last year – up from 64 companies in 2021.
Charlotte May, who is also associate director for the South West and Wales at insolvency litigation financing company Manolete, added: “If a business is having issues with cashflow, having problems paying taxes, rent or staff, or seeing stock begin to pile up, its likely to be financially distressed – and that is the time for its directors to seek advice from a qualified source.
“By doing so, they’ll have more time and more options available to them than if they’d waited for the issue to get worse.”
READ NEXT
Bristol Airport expansion gets go-ahead as High Court appeal dismissed
Owner of catering giant Nisbets seeks investment as firm plots major expansion
App that reduces A&E waiting times wins top award for Exeter inventors
From electric planes to unmanned drones, what does the future hold for air travel?
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
