More than 4,800 start-up firms were launched in the North East of England over the last quarter, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows 4,828 firms were set up in the North East in the first three months of this year – 1,707 in January, 1,614 in February and 1,507 in March.

Start-up figures in the North East were 7.5% higher in Q1 2024 than during the same period in 2023, when 4,492 new businesses were recorded.

Kelly Jordan, chair of R3 in the North East, said: “After a challenging few years, the North East has had a strong entrepreneurial start to 2024.

“These new ventures bring the promise of innovation and job creation for local people, particularly in thriving sectors such as manufacturing, life sciences, and tech.”

Over the same period, insolvency-related activities, which includes liquidator appointments, administrator appointments and creditors’ meetings, fell from 249 in Q1 2023 to 220 in Q1 2024 – a decrease of 11.6%.

Jordan, an Associate Director at Manolete Partners, added: “While it’s still early days, these statistics are green shoots that suggest we are past the worst of the cost-of-living crisis.

“Business confidence is higher than the national average, inflationary pressure is falling, and people are feeling more optimistic about the economy.

“The upcoming rise in minimum wage is front of mind for many directors, particularly for owners of small businesses.

“The next few months will be crucial in determining how businesses can adapt to support this change while maintaining their financial health.

“For any businesses that are struggling with their finances, or that see financial concerns up ahead, it’s important to reach out to a qualified professional as soon as possible.

“Conversations around money are hard, but the sooner you have them, the more time you will have to think about your next steps.”