The number of new businesses set up by North East entrepreneurs so far this year has gone past the 12,000 mark.
According to analysis by insolvency and restructuring trade body R3 of new data provided by CreditSafe, 12,270 start-ups had been established in the North East by the end of the third quarter of the year, with 3,948 coming into existence between the start of July and the end of September.
The Q3 figure is slightly down on the quarterly numbers in the first half of the year, with 4,187 new businesses set up in the region during the first three months of 2022 and 4,135 during the second quarter.
A total of 1,239 new firms were set up in the North East in September, which is the second lowest monthly regional figure this year, ahead only of the 1,213 start-ups founded back in January.
R3’s analysis also found that the number of insolvency-related activities in the region during Q3 was around ten per cent up on the figure for the second quarter of the year.
There were 196 insolvency-related activities, which includes liquidator appointments, administrator appointments and creditors’ meetings, across the North East between July and September, compared to 176 in the preceding three months.
The number of North East firms with overdue invoices on their books rose for the ninth consecutive month during September, with 13,575 regional businesses still holding over 236,000 invoices that should already have been settled.
North East chair of R3 Chris Ferguson, who is head of recovery & insolvency at Gosforth-based RMT Accountants & Business Advisors, says: “Despite the recent economic and political challenges faced by business owners, the North East’s entrepreneurial spirit clearly remains unwavering.
“However, the rise in the number of North East firms experiencing insolvency-related issues over the last quarter is hardly unexpected, and with the challenges facing all businesses in the coming months, management teams need to ensure they are regularly monitoring their financial position.
“Problems paying bills on time, or getting customers to meet agreed payment schedules, can be early indicators of business distress, and ignoring them could quickly lead a business into serious difficulty.
“Taking early action to address any emerging financial concerns will give business owners sufficient time to implement a structured turnaround strategy where it is needed.”