Number of new Yorkshire businesses drops by over 20 per cent, analysis reveals

The research from insolvency and restructuring trade body R3, which is based on analysis of data provided by CreditSafe, shows that in December 2022, 3,295 new businesses were launched in the region – 1,371 less than in the previous month.

This picture is reflected across the UK with all 12 regions and nations recording a fall in the number of start-ups registered since November.

The biggest month-on-month decrease was in Wales with a 37 per cent fall, followed by East Anglia, Northern Ireland, the North East and the South West (all down by 33 per cent).

December 2022 also saw insolvency-related activities in Yorkshire and the Humber creeping up by 1 per cent, with all but two other regions seeing a drop in insolvency-related activity month-on-month from November to December.

Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, said: “Whilst some established high street names reported encouraging results in their Christmas trading updates, the current economic outlook seems to be proving a deterrent to would-be entrepreneurs. With discretionary spending squeezed by the cost of living challenges and inflation rates at their highest since the early 1980s, it’s not surprising that less people are registering new business start-ups given the risks involved in such an uncertain climate.

“Insolvency-related activities are once again on the rise as many sectors try to deal with the impact of increased costs, staff shortages and customers reining in spending post-Christmas.”