Despite the turmoil of the last two years and current pressures on the global economic climate, Yorkshire saw an encouraging growth in new businesses at the beginning of the year with a 37% rise in the level of new start-ups in the region between December 2021 and February 2022.
The research from insolvency and restructuring trade body R3, which is based on an analysis of data provided by CreditSafe, shows that in December 2021, the Yorkshire business community increased with the creation of 3,530 new businesses. This accelerated by 825 to a further 4,353 new businesses in January 2022 – a rise of 23% – and the trend continued into February with 4,845 new firms being established, an increase of 490, or 11%, from the previous month.
The region outperformed the UK as a whole which saw a 20% rise from December to January with the addition of almost 60,000 start-ups, and a near 5% month-on-month increase to February with a further 62,800 new companies being set up.
Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, said: “After what has been one of the most tumultuous periods in living memory with pandemic lockdowns and restrictions affecting almost every aspect of life and causing huge disruption and loss of revenue for so many businesses, it is reassuring to see that the entrepreneurial spirit is alive and well in Yorkshire.
“While there have been many businesses who have struggled over the last two years, upheaval often proves to be a catalyst for positive change with nimble businesses adapting their offering, or coming up with completely new, innovative ventures. It seems that many new enterprises have used the economic ‘pause’ to plan exciting initiatives which we are now seeing coming to fruition.
“However, a word of caution – as the first few years of trading are often the most risky for a new business, extensive research and rigorous financial forecasting, together with adequate funding, are vital. If a fledgling business does run into trouble, the key, as ever, is to seek advice from insolvency professionals at the first signs of trouble when the most options will be available to support the business.”