The number of start-ups in the South West have reached its highest level for ten months, according to new research from R3, the insolvency and restructuring trade body.

R3's analysis of data provided by Creditsafe shows there were 3,605 new firms set-up in the South West in January – the highest recorded figure since March 2022's total of 4,273.

Start-up figures increased by 58.3% in the South West compared December 2022's total of 2,278 – the third highest monthly rise, falling only behind Northern Ireland (61.6% rise) and Wales (58.8%).

Charlotte May, Chair of R3 in the South West, says:

"Entrepreneurialism is clearly alive in the South West, and these new businesses will create opportunities for people and supply chains during a challenging time for the business community and the economy.

"Hopefully, this new wave of South West starts-up will also help balance out the high number of voluntary liquidations which continue following COVID."

Charlotte, who is Associate Director for South West and Wales at Manolete in Bristol continues:

"However, it's also really important to note that businesses can be really vulnerable in their first few years of trading, and the fallout from the pandemic paired with ongoing cost of living concerns makes navigating this even trickier.

"My advice to new company directors is simple – know your business inside out and if you spot an issue, seek help as soon as you can. There are many options out there for businesses that are struggling, but those options become fewer if you don't move quickly and seek advice before the problem spirals out of control."