The enthusiasm of East Midlands entrepreneurs appears not to have been dampened by current economic uncertainty, as the number of new businesses in the region has continued to rise.
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.
The figures indicate that there were 2,524 businesses set up in the East Midlands in April, which is a substantial rise of almost a half (42.2%) compared to the end of last year.
The data coincides with latest Insolvency Service figures for England and Wales showing a 2% decrease in corporate insolvencies for March compared to the previous month, with numbers falling from 2,032 to 1,992.
R3 Midlands chair Stephen Rome, a partner at local law firm Penningtons Manches Cooper, said: “It’s good to see some positive figures beginning to emerge for our region, but it is important to consider this data in the context of an economy buffeted by a multitude of national and global issues.
“April’s rises in the National Minimum Wage and Employers National Insurance, as well as new US tariffs, are key considerations for local businesses, as are the local sector forecasts.
“Construction output has been affected by mixed weather since January, while retail has seen a slowdown in spending as a result of this year’s late Easter. Conversely, hospitality income has risen in recent months, driven in part by the warmer weather and an increase in consumer willingness to spend.
“All of this indicates that if entrepreneurs can plan ahead carefully and realistically, then there are definite opportunities for success. If problems arise, however, then it is important to act swiftly.
“All too often, it is not until a company is on the brink of insolvency that its owners seek financial advice. Yet the fact is that the sooner a business seeks professional help, the more positive its outlook can be.”
