January saw a remarkable 35% increase in new start-ups across Yorkshire and the Humber, according to recent data from R3, the insolvency and restructuring trade body. The region welcomed 4,375 new businesses in January, up from 3,235 in December, signaling a potential upturn in entrepreneurial activity.
This significant month-on-month rise follows a 16% decline observed in December compared to November, suggesting a possible shift in economic trends. Notably, insolvency-related activities, including liquidator and administrator appointments and creditors’ meetings, decreased by 30% in January compared to December. This drop comes after a slight 5% increase in such activities from November to December.
Dave Broadbent, chair of R3 in Yorkshire and partner at Begbies Traynor in York and Teesside, expressed cautious optimism about these figures. He stated, “This is welcome news and it’s encouraging to see some signs of growth amid the economic uncertainty that businesses continue to face.”
However, Broadbent also highlighted ongoing challenges, noting that rising prices, increased employment costs, and potential tariffs are adding to the economic pressures stemming from the pandemic and Brexit. He further emphasized a concerning trend: “Over 47,000 firms in Yorkshire and the Humber have invoices which have gone past their due date for payment, an increase on December’s figures.”
This mixed economic picture underscores the resilience of the region’s business community while also highlighting the persistent hurdles they must overcome. As Yorkshire and the Humber navigate these complex economic waters, the surge in new start-ups offers a glimmer of hope for future growth and innovation in the region.
