Wednesday, May 29, 2024

Summer boost for East Midlands as start-ups rocket and UK economy exits recession, but local businesses should remain cautious says R3 Midlands

A sharp hike in the number of start-up businesses in the East Midlands – the highest percentage rise in the UK regions – as well as an end to the country’s economic recession, should give the local economy a much-needed boost heading into the summer months, but business owners should remain cautious going forward.

This is according to the Midlands branch of national insolvency and restructuring trade body R3 and is based on a monthly analysis of regional start-up data from business intelligence provider Creditsafe and latest research from the Office for National Statistics, which shows a 0.6% expansion in the UK’s gross domestic product in the three months to March.

R3’s figures indicate there were 3,599 businesses set up in the East Midlands in April, which is a substantial rise of 41.69% compared to the previous month and is the highest regional percentage increase in the UK. The April figure is also 54.13% higher than the 2,335 local businesses set up in the region twelve months previously.

R3 Midlands Chair Stephen Rome, a partner at local law firm Penningtons Manches Cooper, said: “This research does reveal some positive news for the East Midlands, with an indication of growing business confidence among entrepreneurs.

“We should remain cautious, however, in what we glean from these figures as, despite an exit from recession, the business economy remains hugely challenging.

“The negative impacts of inflation, higher wage and utility bills, as well as the rising costs of funding, have all made their mark on company balance sheets.

“R3’s advice to any directors 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 Midlands members offer a free initial consultation to those who wish to explore their options.”

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