South West sees surge in business start-ups

News
18/05/2022

More than 11,000 new businesses were set up in the South West in the first three months of the year, according to new research from insolvency and restructuring trade body R3.


R3’s figures, which are based on an analysis of data provided by Creditsafe show that 11,020 businesses were set up in the region in January, February and March of this year – and 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 business start-ups in almost every sector between February and March of this year, 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).


R3 Chair for Wales Charlotte May comments:

“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.”


Charlotte, who is Associate Director for South West and Wales at Manolete in Bristol continues:

“While the number of start-ups is encouraging, this is currently the most difficult economic climate since the height of the pandemic. Businesses are increased creditor pressure, low consumer spending and rising inflation, all of which will have an affect on their margins and their 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. The first few months of trading are always tough and the current economic pressures will only amplify this.

“Business owners in the South West noticing signs of financial distress should not struggle alone. Financial difficulties don’t go away without intervention and seeking advice from a qualified, regulated source at the earliest point usually means there will be more options available to potentially resolve the issue, and more time to take a decision about which is the right one.”