More than 5,000 new businesses were set up in Wales this summer, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 5,014 start-ups in Wales over the summer months – an increase of 7.1% on last year’s figure of 4,683.
Welsh start-up numbers peaked in August of this year, when 1,693 firms were launched, after falling between June (1,672) and July (1,649). This was a change on the trend in 2022, when numbers decreased during the summer months.
Wales’s yearly increase in start-ups has been mirrored across almost every UK region and nation, with only Yorkshire and Humberside seeing a decrease in start-up numbers, falling by 2.6%. The largest increases were seen in Northern Ireland (55.8%), Greater London (12.4%) and Scotland (8.6%).
Charlotte May, Chair of R3 in Wales, says: “Start-ups have thrived this summer in Wales as more and more people have launched their own businesses, which hopefully will provide more opportunities for people and supply chains across the country.
“This is welcome news as businesses have had a tough few years following the pandemic, the economic issues Wales and the rest of the UK have faced, and the surge in energy costs, which have challenged firms of all sizes.”
Charlotte, who is Associate Director for South West and Wales at Manolete, continues: “It’s important to note that the first few years of a business’s life can be the most challenging. To minimise the risk of your business running into financial trouble, keep a sharp eye on your finances – and that applies to directors of established businesses as well as newer ones.
“Whether your business is new or not, keeping tabs on your spending and your stock levels, ensuring you have money put aside for unexpected problems, and reaching out for qualified advice as early as you can if you start to become concerned about your business and its finances, are critical when it comes to spotting and addressing signs your business may be struggling or financially distressed.
“Seeking advice as soon as you start to worry about your business is particularly important as the longer you delay this, the fewer options you have for resolving it, and you have less time to take a decision about your next step than if you’d reached out while your problems were new.”
