The number of business start-ups in Wales rose by 50.5% between December 2021 and February 2022, according to new research from insolvency and restructuring trade body R3.
Despite the financial impact of the COVID-19 pandemic and ongoing global economic pressures, the data, which is based on an analysis of data provided by CreditSafe, reveals 1,832 new businesses were registered in Wales last month – an increase of 14.6% from January’s figures (1,599), and of 50.5% on December’s figure of 1,217.
With 615 more start-ups registered in February than in December, Wales saw the third largest increase by percentage of all the regions and nations in the UK, after the North East (56.1%) and Northern Ireland (53.9%).
Across the UK, there have been significant gains in sectors that suffered considerably as a result of the pandemic, such as accommodation and food services (14% rise) and construction (2.7% increase) as well as large increases in other industries such as transportation and storage (up 26%); real estate (up 9%); and arts; recreation and entertainment (up 8%).
R3 Chair for Wales Charlotte May comments:
It is fantastic to see that 2022 has sparked a wave of entrepreneurial activity in Wales. With the end of Covid restrictions in Wales in sight, there is clearly growing confidence in the economic recovery, as more people clearly believe the market can support new businesses.
Charlotte, who is Associate Director for South West and Wales at Manolete in Bristol continues:
It is especially encouraging to see entrepreneurism and creativity shine through in sectors like hospitality and others that were hit the hardest by the pandemic and its fallout, but have seen start up numbers increase this year as restrictions have either been lifted or begun to lift.
However, the first few months of trading is always tricky, and we urge business owners to be aware of the signs of financial distress, and take action if any of them present themselves.
It’s never easy to talk about your worries about your business – especially if you’ve just started it – but seeking advice at the earliest sign of trouble gives you more potential solutions, more time to take a decision about your next step, and generally leads to better outcomes than if you’d waited until the problem had worsened.
