Start-up boost for West Midlands economy in vital Christmas run-up – report

A sharp rise in the number of companies set up in the West Midlands is a welcome boost to the local economy, with the possibility of an increase in employment rates and business growth in the vital pre-Christmas trading period.

According to the Midlands branch of R3, the UK’s insolvency and restructuring trade body, start-ups rose by 5.86 per cent in the West Midlands last month, from 5,998 in September to 6,351 in October. This was one of the highest numbers for start-up businesses in any UK region outside Greater London.

R3 Midland’s figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show a year-on-year rise of 10.63 per cent in the West Midlands compared to October 2022, when start-ups numbered 5,741.

The R3 analysis also highlights a fall in the number of West Midlands companies with late payments on their books, a trend which has continued over the last six months. Insolvency-related activity in the region, which includes liquidator and administrator appointments as well as creditors’ meetings, has also decreased over the past month.

R3 Midlands Chair Stephen Rome (pictured) said: “It is encouraging to see positive statistics for our region, particularly as trading conditions are so challenging at present.

“With the upcoming Christmas period a crucial time for so many firms, the data indicates that there is still scope for growth in the Midlands. Advances in technology, interconnectedness and cheaper workspaces compared to London are helping to make it easier to start a new business here.

“The fall in companies with late payments is further good news for our region, however it should be noted that late payment figures remain relatively high and can pose a significant threat to a company’s health if not dealt with promptly.

“Should significant cash flow difficulties arise, it’s crucial for business owners to take professional advice as soon as possible. There is a significant amount which can be done to rescue and support local businesses, beyond traditional insolvency solutions, if help is taken early enough.”