North West start-ups surge to over 43,000 in just six months, new R3 research shows

Over 43,000 start-ups were launched in the North West in the first six months of 2024, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows 43,202 firms were set-up in the North West in the first half of 2024 –8,030 in January, 7,780 in February, 6,979 in March, 9,179 in April, 5,599 in May, and 5,635 in June.

Start-up numbers in the North West rose by 7.2% in the first six months of 2024 when compared to the same period in 2023, which saw the 40,300 new firms launched.

Fran Henshaw, chair of R3 in the North West, says: “There has been a significant improvement in business confidence in the North West this year, with both existing and aspiring entrepreneurs feeling more optimistic about the economy and their business prospects. This renewed confidence has resulted in the 2,900 more businesses launching in the first half of this year compared to the same period in 2023.”

While start-up numbers were higher in the first half of 2024 than in the first six months of the previous year, recent months have shown a decline. Start-up numbers were 10.4% lower in Q2 2024 than in Q1 2024.

Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “Although start-up numbers held strong in April, they were significantly lower in the following two months, with May’s total being the lowest recorded since December 2022.

“One factor that could be affecting this is the announcement of the General Election. This political uncertainty may have led some potential entrepreneurs to take a pause and wait to assess the impact it may have on businesses and the economy before launching their ventures.

“The next few months of data will be critical in understanding whether this decline is a momentary dip or if this will be a more long-term trend in the start-up landscape.

“My advice to company directors that are worried about the health of their business, whether it’s new or established, is to seek advice from a qualified professional as early as possible. By doing so, you’ll have more time and more options available to you than if you wait and the problems get worse.”