London sees Q1 startup ‘boom’ with over 70,000 new businesses launched in region

More than 73,600 startups were launched in London over the last quarter, according to new research from R3, the insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows 73,631 firms were set up in Greater London in the first three months of this year, with 23,346 in January, 23,679 in February and 26,606 in March.

Startup figures in London increased by 13.9 per cent in Q1 2023 compared to Q1 2022’s total of 64,646 and rose by 19 per cent when compared to Q4 2022.

The increase in new businesses in London is mirrored across the UK regions and nations, with the West Midlands seeing the largest yearly increase of 29.6 per cent, followed by Wales (26.9 per cent) and Greater London.

Andreas Arakapiotis, chair of R3 in London and South East and partner at Kallis Insolvency Practitioners, commented: “London has had an entrepreneurial start to 2023 and these new businesses will create welcome opportunities for people and supply chains in and around the capital.”

“However, it’s worth noting that the first few years of trading can be some of the most difficult in a business’s life, and directors of those firms need to be aware of the signs of financial distress and act on them if they present themselves.

“The same goes for directors of established companies as well – if you start to see stock piling up, cashflow becoming a problem, or you’re having issues paying staff, suppliers or your landlord, that’s the time to seek advice from a qualified source.

“The earlier you act, the more time you have to consider your next steps, and the more potential options you have to resolve your situation.”

By Matthew Neville – Senior Correspondent, Bdaily