West Midlands businesses set for promising months due to an increase of start-ups
An increase in the number of start-ups in the West Midlands is looking to have a positive effect on the local economy.
According to R3 Midlands, an organisation focused on insolvency and restructuring, the number of new start-ups in the West Midlands grew by 5.86% last month, rising from 5,998 in September to 6,351 in October.
This represents one of the highest numbers of new businesses established in any UK region, except Greater London.
R3 Midlands’ data, based on an analysis of information from Creditsafe, also indicates a 10.63% year-on-year increase in the West Midlands compared to October 2022, when there were 5,741 new start-ups.
The analysis also points to a decrease in the number of West Midlands companies with outstanding late payments, a trend that has continued for the past six months.
Insolvency-related activities in the region, including the appointment of liquidators and administrators, as well as creditors’ meetings, have also decreased in 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.”
