THE number of business start-ups in Northern Ireland reached a 20-month high in July - despite more than a year of rising interest rates and higher running costs.
And experts say it has been driven by both the region's “unique position” in having full market access to both Britain and the EU, and also by government incentives.
Some 1,067 new firms were set up in July, which is the highest monthly total since December 2021, according to insolvency and restructuring trade body R3’s analysis of data provided by Creditsafe.
Start-ups in the north rose 21.4 per cent from the June total of 879 and were up by 58.3 per cent year-on-year from the July 2022 total of 674.
Indeed Northern Ireland showed by far the greatest annual increase of any UK region (Greater London and East Midlands came next, with rises of 14 per cent and 12.1 per cent respectively).
R3 regional chair Ian Leonard said: “July was a milestone month for Northern Ireland’s entrepreneurs, with start-up numbers hitting a new high as 1,067 new firms set up.
“Start-up numbers have been consistently higher this year than last year, driven by fact that Northern Ireland occupies a unique position with full market access to both GB and the EU, the amount of support and incentives that are available for aspiring entrepreneurs, and more people wanting to be their own boss after the pandemic.”
Ian, a director at Interpath Advisory, added: "Whilst it is fantastic to see this increase, the first few years of a business’s life are often the hardest, and directors must remain vigilant to the signs of financial distress.
“If you’re noticing declining sales, have cash flow concerns, or are seeing debts mount and stock levels rise, then these are all indicators it’s time to seek help.”
Allied to the start-up numbers, fewer Northern Ireland businesses are going belly up.
Between April and June there were 35 company insolvencies in the north - a decrease of 40 per cent when compared to the same quarter of 2022.
These were made up of 24 CVLs, seven compulsory liquidations, two CVAs and two administrations.
This compared to company insolvencies in England and Wales soaring by 40 per cent in the year to May - the highest level since monthly records began in January 2019.
