Yorkshire sees “significant rise” in new businesses despite UK’s economic woes

In a challenging environment amid spiralling inflation, Yorkshire and the Humber saw a “bright spot” on the horizon with the number of business startups registered in October 2022 rising by 16.2 per cent compared with September, the highest month-on-month increase of any region in the UK.

The research from insolvency and restructuring trade body R3, which is based on analysis of data provided by CreditSafe, shows that in October, 4,590 new businesses were launched in the region, 640 more start-ups than in the previous month.

This makes October the month with the highest number of new businesses in Yorkshire since May (4,953), with only September (3,950) seeing the number dropping below 4,000.

While the region outperformed the UK as a whole, which saw an 8.4 per cent rise from September to October and the addition of over 64,000 startups, all 12 regions and nations surveyed showed a month-on-month increase in the number of new businesses.

The regions and nations experiencing the strongest uplift in start-ups were West Midlands (up 14.1 per cent since the previous month); Wales (up 11.7 per cent) and the North East (up 11.5 per cent); and the East Midlands (up 10.9 per cent).

The regions seeing the least increase in new businesses were Northern Ireland, Scotland and Greater London (up by 3.7 per cent, 4.8 per cent and 6.1 per cent respectively).

The research also showed that numbers of businesses in Yorkshire and the Humber experiencing insolvency-related activity again saw a slight decrease last month, falling from 232 in September to 216 in October, a drop of 6.9 per cent and the lowest figure since January.

Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, commented: “There’s no doubt that businesses are more likely to thrive in a stable economic and political climate, so, given the turmoil of recent months, it is particularly encouraging to see entrepreneurs in the region and across the UK having the confidence to launch new ventures.

“Despite the wave of negative news, it is important that businesses are able to spot market opportunities and commercialise innovative ideas.”

By Matthew Neville – Correspondent, Bdaily

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