• Sun. Jun 16th, 2024

North East Connected

Hopping Across The North East From Hub To Hub

R3 North East chair Chris FergusonR3 North East chair Chris Ferguson

New data has revealed that an average of over 1,300 new businesses were set up each month in 2022 by North East entrepreneurs.

According to analysis by insolvency and restructuring trade body R3 of new data provided by CreditSafe, 15,971 start-ups were established in the North East last year, with 3,701 coming into existence in its final quarter.

The busiest month of 2022 for North East start-ups was March, during which 1,572 new firms began trading, while December, with 928 new companies, was the quietest.

The data also showed the enduring problems facing regional firms with keeping up with their payment schedules, with the number with overdue invoices on their books remaining high at the end of the year.

Over 167,000 invoices that should already have been settled were still being held in December by 12,358 regional businesses, although both figures are below the monthly average for 2022.

R3’s analysis also found that there were 828 insolvency-related activities in the region during 2022, which includes liquidator appointments, administrator appointments and creditors’ meetings, and that the monthly average for the second half of the year (64) was lower than the average across the first half (74).

North East chair of R3 Chris Ferguson, who is head of recovery & insolvency at Gosforth-based RMT Accountants & Business Advisors, says: “Despite the challenges of the last few years, and those that we’ll undoubtedly face through 2023, the North East’s entrepreneurial spirit clearly remains high.

“Even when times are tough, there are still opportunities out there for people with the right ideas, robust business plans and a determination to succeed to achieve their goals.

“This obviously benefits the regional economy, which looks likely to face severe headwinds this year, so we hope that as many as possible of these will succeed.

“Problems paying bills on time, or liquidity issues caused by customers not paying within terms, can be early indicators of business distress, and ignoring them could see your cashflow situation deteriorate dangerously and very quickly.

“The key to giving businesses the chance to resolve or avoid financial difficulties is for management teams to seek early advice.  This will make sure they retain access to the widest possible range of potential turnaround solutions.”