Big rise in the number of start-up firms in Wales

The number of start-up firms in Wales in April soared to the highest monthly total in over two years, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows 2,504 firms were set-up in Wales in April – the highest monthly total since records began in December 2021.

Start-ups were 46.5% higher in April 2024 than in April 2023, when 1,709 new businesses were recorded.

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Tim Sloggett, chair of R3 in Wales, said: “The surge in start-ups we’ve seen in April signifies a real sense economic optimism is taking hold in Wales, and this has been supported by the news business confidence rebounded in the first quarter of the year.

“These new ventures will potentially create jobs for local people and opportunities for local supply chains, particularly in thriving sectors such as renewables, tech and life sciences.”

Mr Sloggett, who is a managing director at business advisory firm Quantuma, added: “The first few years of trading can be particularly challenging for businesses. It is vital that both new and established businesses have robust plans that are monitored regularly, with a sharp focus on the critical success factors.

“Directors should also develop alternative strategies with clear parameters for when they would be implemented if the business is not progressing as planned.”

Separate data from the ONS showed that in April more than one in five (21%) trading businesses in UK reported that their turnover had decreased compared to March. In contrast 19% reported their turnover was higher. The data also shows that in May, 18% of trading businesses reported that they expect their turnover to increase this month, while 59% expect turnover to stay the same.

Moreover just 6% of businesses, with 10 or more employees, experienced global supply chain disruption in April, which was broadly stable with March. Of those businesses, 38% reported the conflict in the Middle East as the main reason for their disruption.