Autumn boost for West Midlands businesses as start-ups increase and cashflow improves - R3 Midlands

A late summer hike in the number of start-up businesses in the West Midlands, as well as indications of improving cashflow, could give the region's economy a much-needed boost heading into the final quarter of 2023.

This is according to the Midlands branch of national insolvency and restructuring trade body R3, and is based on an analysis of data from business intelligence provider Creditsafe.

R3's figures show a month-on-month rise of 6.43 per cent in the number of businesses set up in the West Midlands in August, while the quantity of debts owed by liquidated firms in the region fell by a sizeable 13.01 per cent over the same time period.

There has also been a marginal fall of 0.07 per cent in the number of West Midlands companies with late creditor payments on their books, a figure which has decreased steadily since March of this year.

R3 Midlands Chair Stephen Rome (pictured), a director at law firm Thursfields in the region, said: “This research reveals some positive news for the West Midlands, with an indication of growing business confidence. We should remain tentative, however, in how we view these figures in the context of a hugely challenging economic backdrop.

“Inflation, higher wage and utility bills, plus the rising cost of borrowing are but a few of the factors impacting heavily on the profitability of West Midlands businesses as they fight hard to survive and thrive.

“Our advice to any directors who are worried about the viability of their company, start-up or otherwise, is to seek professional help and to do it as soon as possible. Many R3 members offer a free consultation to those who wish to explore their options.”