A late summer hike in the number of start-up businesses in the East Midlands, as well as indications of improving cashflow and a drop in insolvency-related activity, could give the region’s economy a much-needed boost heading into the final quarter of 2023.
This is according to the Midlands branch of national insolvency and restructuring trade body R3, and is based on an analysis of data from business intelligence provider Creditsafe.
R3’s figures show a month-on-month rise of 4.10% in the number of businesses set up in the East Midlands in August, while the quantity of debts owed by liquidated firms in the region fell by a sizeable 10.68% over the same time period.
There has also been a significant month-on-month decrease of 19.62% in insolvency-related activities in the region, which include liquidator and administrator appointments as well as creditors’ meetings.
R3 Midlands chair Stephen Rome, a director at law firm Thursfields in the region, said: “This research reveals some positive news for the East Midlands, with an indication of growing business confidence. We should remain tentative, however, in how we view these figures in the context of a hugely challenging economic backdrop.
“Inflation, higher wage and utility bills, plus the rising cost of borrowing are but a few of the factors impacting heavily on the profitability of local businesses as they fight hard to survive and thrive.
“Our advice to any directors who are 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 members offer a free consultation to those who wish to explore their options.”
