A survey by insolvency and restructuring trade body R3 shows that the number of businesses in North West England grew during 2019, with 11,000 more companies opening than closing.
In December 2019, there were 380,000 active businesses in the region, an increase of 21% since 2015; this is slightly above the overall UK figure of 20%.
Consistent growth in new business numbers over recent years indicates the North West region has a strong entrepreneurial spirit and is enjoying a boom in start-up businesses.
While 3,000 more businesses were created than closed in 2019 than the previous year, growth remains slower than in 2016 when 33,000 new businesses were added to the North West’s total, but the trend of declining growth rates may now be in reverse.
Paul Barber, North West Chairman of R3 and partner at Begbies Traynor, said:
These figures are a celebration of the enterprise culture within the North West. In recent years, we have seen an unprecedented number of new businesses created and, while 2019 didn’t match the peak of a few years ago, it was another strong year for business creation.
“Start-ups create new jobs and prosperity and drive innovation. They help replace declining industries to maintain a competitive economy. However, starting a business is always a risk and inevitably, not all will succeed.
“As we enter a new decade, amidst a period of uncertainty and change, it is critical that we maintain this spirit of enterprise. That means having the right business culture, laws and systems in place to encourage and support start-ups and allow entrepreneurs to recover from business failure.
R3 compiled the figures using Bureau van Dijk’s ‘Fame’ database of UK companies.
Image: Paul Barber of Begbies Traynor, © Giles Rocholl Photography Ltd