Almost 17,000 new businesses were set up in the North East of England in 2023, according the new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows 16,851 firms were set-up in the North East in 2023 – a rise of 5.5% from 2022’s total of 15,971.

Monthly start-up numbers peaked in March, which saw the creation of 1,740 new firms – an increase of 10.7% compared to March of 2022, when numbers peaked for the year at 1,572.

Chris Ferguson, Chair of R3 in the North East, said: “Amidst tough economic challenges like high inflation, persistent interest rates, and supply chain issues, tens of thousands of entrepreneurs in the North East embraced the opportunity to launch new businesses last year.

“Many of these new ventures are micro and small businesses, owned and run by local people, and will play a crucial role in supporting the growth of the North East’s economy in the year ahead.”

Ferguson, a director and head of recovery & insolvency at RMT Accountants & Business Advisors, added: “However, setting up a new business is just the first step – directors need to stay alert to any signs of financial distress and act accordingly should they arise.

“Problems paying the bills or staff on time, stock levels piling up and falling revenue are all early indicators a business could be in trouble, and at this point it’s essential to seek advice from a qualified source, whether you’re running a start-up or a more established business.

“Many R3 members in the North East are happy to provide a free initial consultation to learn more about your concerns and help you understand the options you have for resolving them.”