Sunday, July 21, 2024

Call for new government to support East Midlands entrepreneurs as start-ups slump

The steep drop in the number of new businesses set up in the East Midlands has continued into a second month, with significant numbers of local entrepreneurs holding back while the political landscape remains uncertain.

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.

R3’s figures show there were 2,141 businesses set up in the East Midlands in June, which is a substantial 40.51% decrease compared to the 3,599 new businesses registered in April, prior to the announcement of the General Election. The May figure for the region was similarly low, with only 2,076 start-ups during the month.

These statistics sit within a volatile economic backdrop while the local economy waits for the dust to settle on the new government. There remains a high number of East Midlands companies with late payments on their books – 23,736 in June – and also a growing quantity of debts owed by liquidated firms in the region.

R3 Midlands Chair Stephen Rome, a partner at local law firm Penningtons Manches Cooper, said: “It’s apparent that entrepreneurs have, understandably, taken a cautious approach over the last couple of months, waiting to see how they may be supported or held back by a change in government.

“Going forward, it’s vital for start-ups to have a reliable economic platform to launch their undertakings, particularly as they are still having to navigate the longer-term economic challenges of inflation and spiralling fuel, energy and wage costs. Helping to achieve this has to be a political priority for our new politicians, law-makers and opinion formers.

“In the meantime, should significant cash flow difficulties arise for new entrepreneurs or established business owners alike, it’s crucial to take professional advice as soon as possible. There is a significant amount which can be done to rescue and support local businesses if help is taken early enough.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.

Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.