The number of new businesses set up in Wales rose by 25.3% in July 2025 compared to the same month last year, while insolvency-related activity in the region fell by 19.7% over the same period, according to new research from R3, the UK’s restructuring, turnaround and insolvency trade body.
R3’s analysis of data provided by Creditsafe shows that 2,035 new businesses were set up in Wales in July – a 25.3 % increase from July 2024’s total of 1,624.
Over the same period, the number of insolvency-related activities – which includes liquidator and administrator appointments and creditors’ meetings – fell from 71 to 57, a 19.7% drop.
Bethan Evans, Chair of R3 in Wales, says: “These figures suggest growing confidence in the region’s business community. Start-up numbers in July were notably higher than in the same month last year, which indicates that more people are willing to take the leap into running their own business despite ongoing economic pressures.
“It is possible that rising unemployment may be encouraging some individuals to explore self-employment or start their own businesses. When traditional job opportunities are limited, setting up a new venture can be an attractive route, and this may partly explain the increase in start-ups we are seeing in Wales.
“The 19% year-on-year fall in insolvency-related activity is also significant shift and a welcome one, given the economic climate we are currently facing. Business costs sky-rocketed in April, inflationary pressures remain, and consumer spending is still cautious – especially on larger or non-essential purchases. Against this backdrop, it is encouraging to see fewer businesses encountering financial distress.”
Bethan, who is a partner at Menzies LLP, adds: “It is important remember that the market remains uncertain and unstable. Many businesses are likely still under significant pressure, but may be relying on short-term measures to stay afloat while they wait to see if trading conditions or the broader economic picture improve.
“While it is positive to see new businesses emerging, directors must stay alert to the financial health of their firms. Whether a business is newly established or long-standing, it is important to keep a close eye on finances and to seek support as soon as any difficulties arise.
“Seeking advice early – before cashflow issues become critical – is still the best way to protect a business and its future.”
