Region 's rise in start-ups offset by business failure - R3

Latest research from the Midlands branch of national insolvency and restructuring trade body R3 paints a challenging picture for the West Midlands, with indications that local business start-ups are increasing, while companies are having to fight harder to survive.

R3 's figures, which are based on an analysis of data from business intelligence provider Creditsafe, highlight that the West Midlands had 6,845 start-up companies in March, an increase of 1,260 on the previous month 's figure of 5,585. Conversely, the region also had 426 insolvency-related activities last month, more than double February 's statistic of 182.

The R3 research also indicates that, in March, the number of West Midlands companies with late payments was 50,597, a marginal decrease on February 's figure of 51,084.

R3 Midlands Chair Eddie Williams, partner at PwC in Birmingham, said: “This R3 report reveals the extent to which local businesses are having to fight to survive and grow in this current economic climate. While the increasing number of start-ups in the region is positive, it is obvious that late payments are likely to be a significant contributory factor in local business distress.

“Both the global and local economies are hugely challenging at present, and it is crucial for local business owners, whether in start-ups or established companies, to be on top of their invoice ledgers and tackle late payments and the impact of bad debts as soon as they become evident.

“For those businesses which are already struggling, or whose directors may be worried about its situation, the sooner professional advice is sought, the more opportunities may be available for finding the best possible outcome. Many R3 members offer a free consultation to those who are looking for such help and want to explore their options. ”