UK business creation and closure: No apocalypse now

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Number of business creations last quarter was 15% higher than in Quarter 3 2022.Regionally Scotland, Northern Ireland, the South East and East of England were the strongest for new business creation.

Number of business closures last quarter was 14% lower than in Quarter 3 2022.Regionally the West Midlands and the North East saw the biggest improvement.“UK businesses face an exceptionally tough economic environment, with rising costs, higher interest payments and cash strapped customers. Against that background Q3’s business creation and closure numbers are remarkably robust.

To be clear this isn’t a start-up boom, business creations are about in line with the long run average. But nor is there an apocalypse sweeping though UK businesses. In fact things are significantly better than they were this time last year.

That’s probably a better result than could reasonably have been expected, and an improvement on where we were at the start of the year. Of course there are tough times ahead, but so far at least, UK businesses seem to be weathering the storm. It’ll be interesting to see how that influences the Autumn statement in a month’s time.”The views of authors published on South Africa Today are their own and do not necessarily represent the views of South Africa Today.

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