New start-ups fall in South West
The South West was one of only two UK regions to see a fall in the number of businesses being started in the first half of 2024.
The region saw a slight drop of 0.85%, while Wales was down 9.99%, according to the New Startup Index published by Beauhurst and supported by NatWest.
The other 10 regions all saw an increase, led by Northern Ireland, which had an 92% jump. This was partly caused by retail businesses set up to trade online.
Paul Thwaite, NatWest group chief executive, said: “The UK’s potential for growth is made clear by the numbers of people now starting their own businesses. Small businesses are the lifeblood of our economy, accounting for three-fifths of employment and about half of the private sector’s turnover. If these new businesses are given the right conditions to succeed, they could significantly boost the UK economy.”
468,000 firms started up in the first half of 2024. This brings the number of companies operating in the UK to 5.47m. The South West was home to 23,000 new businesses, which keeps it slightly ahead of the East Midlands and Scotland.
Henry Whorwood, managing director at Beauhurst, said: “Certain aspects of the economy are firing on all cylinders. UK entrepreneurs are still starting lots of new businesses. This may mark the beginning of a new normal with higher rates of entrepreneurship in the UK economy than known previously.”
