Nearly 12,000 new businesses have set up in Scotland since the start of the year, according to new research from insolvency and restructuring trade body R3.
R3’s figures, which are based on an analysis of data provided by Creditsafe, show 11,783 new businesses were set up in the country during January, February, March and April this year.
March busiest month for Scottish start-ups
March was the busiest month for Scottish start-ups, with 3,494 businesses being established that month, followed by February (2,925) and January (2,715).
This mirrors the UK-wide picture, which saw 77,790 businesses set up in March, 66,024 in February and 64,264 in January.
Confidence remains despite pandemic turbulence
“The start of the year and the end of the Covid restrictions have clearly led to a boom in entrepreneurialism in Scotland with a large number of people starting their own businesses,” said R3 in Scotland chairman, Richard Bathgate.
“People are still confident about the economy despite recent turbulence caused by the pandemic and war in Ukraine and there’s clearly a belief the market can support new businesses.”
Bathgate, who is a restructuring partner at Johnston Carmichael, added: “Despite this, it’s crucial to bear in mind we’re operating in the most difficult economic climate since the pandemic was at its peak.
‘Be prepared’ for first year being challenging
“Businesses are facing increased creditor pressure, rising inflation and low consumer confidence, all of which will have an effect on their margins and their finances.
“While no-one thinking about setting up a new business should be discouraged by this, they should be prepared for their first year to be a challenging one.
“The first few months of trading as a new business are always tough and the current economic pressures will only amplify this.”
