Research reveals surge in start-ups
THE number of business startups in Wales has risen by more than half since December 2021.
Start-ups rose by 50.5% between December 2021 and February 2022, according to new research from insolvency and restructuring trade body R3.
The firm reported that 615 more start-ups registered in February than in December.
As a result, Wales saw the third largest increase in start-ups out of all regions and nations in the UK, after the North East (56.1%) and Northern Ireland (53.9%).
The report also revealed that 1,832 new businesses were registered in Wales last month, despite rising financial uncertainty due to the pandemic and ongoing global economic pressures.
This meant an increase of 14.6% from January figures (1,599 new businesses) and a 50.5% increase on 1,217 new businesses in December 2021.
Surprisingly, across the UK, sectors that suffered during the pandemic and lockdown restrictions have seen significant gains, including accommodation and food services (14% rise) and construction (2.7% increase).
New businesses in the transportation and storage sectors also rose by 26% and real estate by 9%.
R3 Chair for Wales Charlotte May said: “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.
“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.”
She added: “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.”