Welsh businesses increase in number

THE NUMBER of active businesses in Wales rose by over 4,400 between January 2019 and January 2020, according to new figures from the Welsh branch of insolvency and restructuring trade body R3.
There were over 110,000 active companies registered in Wales in January of this year, compared to just under 106,000 12 months ago – a rise of 4.2%. The growth in active business numbers across 2019 was around two and a half times higher than the increase seen over 2018, with the number of active Welsh-headquartered businesses growing by around 1,800 (equivalent to 1.7%) between January 2018 and January 2019.
Wales’s growth in active company numbers in 2019 was slightly higher than the rate for the UK as a whole (3.8%), and Wales is currently home to around 3% of all active companies registered in the UK. Of all 12 UK regions, London has by far the highest percentage of registered company headquarters, with 25.3% of the total.
Commenting on the research, R3 Wales’s Chair Philip Winterborne, a partner at Temple Bright solicitors, said: “It’s really encouraging that, against a backdrop of subdued economic growth and considerable uncertainty, the net increase in Wales-based businesses has been so strong across 2019.
“The fact that 2019 saw two and a half times as many new businesses created as 2018 is also heartening, while all the newly-created companies should give a boost to the Welsh economy as we prepare for a year of significant change.
“Launching a new venture is always nerve-wracking, and everyone who takes the plunge should be applauded for their initiative. In many cases, entrepreneurs take out loans with personal guarantees attached – this is something we are seeing more and more, and anyone in this position should be alive to the consequent risks to their own financial standing if business isn’t as good as anticipated.
“New businesses are often less robust than more established ones, for obvious reasons, and it takes a lot to make a venture a success. If a company hits a bump in the road, unbiased third-party advice from a qualified and accredited business expert, such as an insolvency practitioner, can be a crucial ingredient in averting more trouble. The sooner directors seek help, the more options they have for turnaround and subsequent success.”
The figures are compiled by R3 using Bureau van Dijk’s ‘Fame’ database of UK companies.