East Midlands businesses set for promising months ahead with start-ups growing

An increase in new businesses being established in the East Midlands is giving a boost to the local economy.

This growth gives the economy hope for more jobs and increased business activity during the crucial pre-Christmas trading season.

According to R3 Midlands, a trade organisation focused on insolvency and restructuring, there was a 9.14% increase in new start-ups in the East Midlands last month, with the number rising from 2,319 in September to 2,531 in October.

R3 Midlands’ data, based on an analysis of information from Creditsafe, also reveals a 12.44% year-on-year increase in new businesses in the East Midlands compared to October 2022 when there were 2,251 start-ups.

Additionally, the analysis shows a decline in the number of East Midlands companies experiencing late payments, a trend that has persisted over the last six months.

Insolvency-related activities, including appointments of liquidators and administrators, as well as creditors’ meetings, have also decreased in the region over the past month.

R3 Midlands chair Stephen Rome said: “It is encouraging to see positive statistics for our region, particularly as trading conditions are so challenging at present. With the upcoming Christmas period a crucial time for so many firms, the data indicates that there is still scope for growth in the Midlands. Advances in technology, interconnectedness and cheaper workspaces compared to London are helping to make it easier to start a new business here.

“The fall in companies with late payments is further good news for our region, however, it should be noted that late payment figures remain relatively high and can pose a significant threat to a company’s health if not dealt with promptly.

“Should significant cash flow difficulties arise, it’s crucial for business owners to take professional advice as soon as possible. There is a significant amount which can be done to rescue and support local businesses, beyond traditional insolvency solutions, if help is taken early enough.”