A rise in the number of East Midlands start-up businesses and a fall in the number of companies with late payments makes for cautious optimism in the region amidst a sluggish UK economy.
According to research from the Midlands branch of R3, the UK’s insolvency and restructuring trade body, East Midlands start-ups rose by 3.7% last month, from 2,335 in April to 2,422 in May.
R3 Midlands’ figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show that the number of East Midlands companies with late payments on their books fell over the same period.
R3 Midlands chair Stephen Rome, a director at law firm Thursfields, said: “These are encouraging statistics for our region and show that there is still scope for growth in the current environment.
“The decrease in the number of local businesses with late payments is further positive news, particularly as the business economy is still facing the challenges of stubbornly high inflation, rising costs of materials and wages as well as a squeeze on consumer spending.
“Should significant cash flow difficulties arise, however, it’s crucial for business owners to take relevant professional advice. There is a significant amount which can be done to rescue and support local businesses, beyond traditional insolvency solutions, if help is taken early enough.”
