The number of Welsh start-ups increased 143.1% in December 2022 compared to the same period in 2021, according to new research from R3, the insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows that 1,060 new businesses were set up in Wales last month – an increase of 624 new firms from December 2021’s total of 436, and a figure which takes the total number of new businesses launched in 2022 in Wales to 18,170.

Wales was one of the only regions and nations in the UK to see a rise in new business start-ups between December 2021 and December 2022, falling only behind the West Midlands (223.9% increase) and ahead of the North East (3.3% increase).

Charlotte May, Chair of R3 in Wales, says:

“Despite severe economic headwinds, entrepreneurialism is clearly still flourishing in Wales, with 1,060 new businesses set up last month.

“While this is great news, the first few years of a business’s life are typically the most challenging, and it’s really important its directors are aware of the signs of financial distress and act on them as soon as they show themselves.

Charlotte May, who is also Associate Director for the South West and Wales at Manolete, continues:

“If a business is having issues with cashflow, having problems paying taxes, rent or staff, or seeing stock begin to pile up, its likely to be financially distressed – and that is the time for its directors to seek advice from a qualified source.

“By doing so, they’ll have more time and more options available to them than if they’d waited for the issue to get worse.”