North West start-ups hit five-month low, new R3 research shows

R3’s analysis of data provided by Creditsafe shows 5,663 firms were set-up in the North West in November – the lowest monthly total since June’s total of 5,635.

Start-up figures in the North West were 19.8% lower in November 2024 than in November 2023 when 7,061 new businesses were launched, and 18.7% lower than October 2024’s figure of 6,964.

Fran Henshaw, Chair of R3 in the North West, says: “November’s figures suggest that many potential entrepreneurs in the North West are pausing to consider whether now is the right time to start a business.

"With ongoing concerns around the high costs of wages, rent and raw materials, it appears that some are choosing to wait and see whether the economy shows signs of stabilising in the new year before committing their time and money to a new venture.

“It’s likely that recent announcements made in the autumn Budget are also contributing to this caution, as people take the time to consider how these new measures could affect their plans to start, staff and run a new business.”

Start-up numbers dropped both month-on-month and year-on-year in every UK region and nation, with Northern Ireland seeing the sharpest fall at 27.7%, and 43.1% respectively.

Scotland saw the smallest monthly fall in start-up numbers at 11.8%, while Wales saw the smallest yearly fall, dropping just 9.3%.

Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “The number of start-ups is one of the key indicators of economic confidence, and the monthly and yearly decline across all parts of the UK is a clear sign that people nationwide are approaching the current economic climate with some caution.

“Heading into 2025, business owners will need to be prepared to navigate further legislative changes, alongside expected rising energy costs in January and April and the continuing, though slowing, increases in the cost of goods.

“My advice to directors is to seek advice at the earliest signs of financial distress. If you’re seeing a decline in sales or finding it difficult to pay bills or wages on time, it’s important to speak to a qualified professional about the challenges you’re facing. Acting early will give you more time to assess your situation and more potential options for addressing your concerns.”