A sharp hike in the number of start-up businesses in the West Midlands should give the local economy a much-needed boost, but business owners should remain cautious as they head into the summer months.
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 6,449 businesses set up in the West Midlands in March, which is a substantial rise of 15.22% compared to the previous month and is the highest monthly number of start-ups the region has seen since April of last year.
The data also shows, however, an 8.42% rise in insolvency-related activity in the West Midlands, which includes liquidator and administrator appointments as well as creditors’ meetings.
The number of West Midlands companies with late payments on their books has also risen, standing at 48,337 for the month of March.
R3 Midlands chair Stephen Rome, a partner at the Birmingham office of law firm Penningtons Manches Cooper, said: “It’s encouraging to see some green shoots of recovery starting to emerge in our region, particularly as we are currently facing so much economic uncertainty.
“It is important, though, to see everything in context as the economy remains hugely challenging, not least with this month’s introduction of National Insurance and National Minimum Wage rises. As a result, enquiries for restructuring and insolvency support are increasing as directors look to take specialist advice about their business finances.
“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.”
