According to the Eastern branch of R3, the UK’s insolvency and restructuring trade body, start-ups rose by 11.05% in East Anglia last month, from 7,794 in September to 8,655 in October. This was the highest number of start-up businesses in any UK region outside Greater London.
R3 Eastern’s figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show a year-on-year rise of 17.24% in East Anglia compared to October 2022, when start-ups numbered 7,382.
The R3 analysis also highlights a fall in the number of East Anglian companies with late payments on their books, a trend which has continued over the last six months. Insolvency-related activity in the region, which includes liquidator and administrator appointments as well as creditors’ meetings, has also decreased over the past month.
R3 Eastern Chair Hayley Watson, associate director at East Anglian business rescue and insolvency practice McTear Williams & Wood, said: “It is encouraging to see positive statistics for our region, particularly as trading conditions are so challenging at the moment.
“With the upcoming Christmas period a crucial time for so many firms, the data indicates that there is still substantial scope for growth in East Anglia. Advances in technology, interconnectedness and cheaper workspaces compared to London are helping to make it easier to start a new business here.
“The fall in companies with late payments is further good news for our region, however it should be noted that late payment figures remain relatively high and can pose a significant threat to a company’s health if not dealt with promptly.
“Should significant cash flow difficulties arise, it’s crucial for business owners to take professional advice as soon as possible. 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.”
Image shows R3 Eastern Chair Hayley Watson. Copyright: Hayley Watson.