West Midland Remains Optimistic Despite Economic Uncertainty
A sharp hike in the number of West Midlands start-up businesses and a fall in insolvency-related activity leaves the region feeling cautiously optimistic amidst economy uncertainty in the UK
According to research from the Midlands branch of R3, the UK’s insolvency and restructuring trade body, start-ups rose in the West Midlands by 23.7% last month, from 5221 in April to 6460 in May.
The figures are based on an analysis of data from business intelligence provider Creditsafe, showing that insolvency-related activity, which includes liquidator and administrator appointments as well as creditors’ meetings, fell by 18.0% over the same period.
R3 Midlands chair Stephen Rome (pictured above), 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 fall in insolvency activity is further positive news for local entrepreneurs, 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.”
He added: “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.”
