South West sees a boom in start-ups since start of year

South West start-ups boomed in April as the number of new businesses soared to the highest monthly total in over two years.

The data comes from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows 4,720 firms were set-up in the South West in April – the highest monthly total since records began in December 2021.

Start-up figures in the South West were 39.9% higher in April 2024 than in April 2023, when 3,374 new businesses were recorded.

Tim Sloggett, chair of R3 in the South West, said: “The surge in start-ups we’ve seen in April signifies a real sense economic optimism is taking hold in the region, and this has been supported by the news the South West saw the biggest jump in business confidence in the UK last month.

“These new ventures in the region will potentially create jobs for local people and opportunities for local supply chains, particularly in thriving sectors such as engineering, technology, and retail.

Tim, who is a managing director at business advisory firm Quantuma, continues: “The first few years of trading can be particularly challenging for businesses. It is vital that both new and established businesses have robust plans that are monitored regularly, with a sharp focus on the critical success factors.

“Directors should also develop alternative strategies with clear parameters for when they would be implemented if the business is not progressing as planned.

“If financial concerns arise, I would urge all directors to reach out to a qualified professional as soon as possible to ensure that they have the best chance of survival and to meet their statutory obligations as directors.

“Conversations around money are hard, but the sooner you have them, the more time you will have to think about your next steps and there will be more options available.”