Yorkshire reports rise in business start-ups, says R3

R3’s latest figures, based on data from Creditsafe, show that business start-ups across Yorkshire and the Humber rose by four per cent in July compared with the previous month.

The region followed a UK-wide trend, with start-up numbers increasing in every part of the country apart from the East Midlands (minus one per cent) and Northern Ireland (minus two per cent).

However, the region also recorded a 7% rise in insolvency-related activity, which includes the appointment of liquidators and administrators and creditors’ meetings. This increase mirrors trends seen across the North of England, with the North East seeing a 49 per cent jump and the North West a five per cent rise over the same period.

In contrast, insolvency-related activity fell by 62 per cent in Northern Ireland and 23 per cent in Wales. Elsewhere in England, it rose in East Anglia (24 per cent), Greater London (16 per cent), and the South-East (13 per cent).

Dave Broadbent, chair of R3 in Yorkshire and a partner at Begbies Traynor, said: “It’s encouraging to see a steady increase in start-up activity in Yorkshire and the Humber, which suggests there’s confidence among entrepreneurs and an appetite to bring new products and services to market. This resilience and creativity are real strengths of the regional economy.

“However, the simultaneous rise in insolvency-related activity shows that many existing businesses are still under significant pressure. The combination of high interest rates, persistent inflation in some sectors, and ongoing supply chain issues is making it hard for firms to maintain healthy cashflow.”