The number of start-ups set up in the North West hit the lowest level of 2025 so far in May, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows there were 6,413 new business established in the North West in May – the lowest monthly total in 2025 so far.

Start-up numbers dropped by 10.9% in May when compared to the previous month’s total of 7,194. 

Fran Henshaw, Chair of R3 in the North West, says: “The drop in start-up numbers last month may reflect a period of reassessment for many potential entrepreneurs, particularly following April’s increases to employer National Insurance and the minimum wage. Many would-be business owners may be taking time to evaluate how these changes affect their plans before deciding how to move forward.

“While business confidence has held steady in the region in recent months, the dip in start-ups in May shows that some uncertainty remains, especially given the lingering impact of inflation and an increased tax burden.”

However, despite being the lowest monthly total so far this year, May’s figure was 14.5% higher than in May 2024, when 5,599 new businesses were established.

Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “While May’s start-up numbers hit the lowest monthly total this year, the fact that they remain above last year’s level shows that entrepreneurial activity in the North West has held up better than might have been expected given ongoing economic pressures.

“It may not be a dramatic shift, but it could point to early signs of improvement, and that some challenges, while still present, have become more manageable compared to last spring.

“For business owners facing financial difficulties, the most important step is to seek advice early. No one should feel they have to navigate money worries alone, and by speaking to a qualified professional at the first signs of distress, you will have more time and more options for resolving your concerns than if you waited for the issues to spiral.”