'Exciting place to start a business': Northern Ireland led UK in start-up growth in 2024, new R3 research shows

Northern Ireland saw the largest percentage increase in start-up numbers in 2024 compared to other UK regions and nations, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows 16,664 firms were set-up in Northern Ireland in 2024 – a rise of 25.5% from 2023’s total of 13,280.

This was the largest yearly percentage increase in start-up numbers when compared to the other UK regions and nations, followed by Wales (1.7% rise), the North East (0.3%) and the East Midlands (0.1%). All other UK regions and nations saw a yearly fall in start-up figures.

Ian Leonard, chair of R3 in Northern Ireland, said: “Northern Ireland has proven itself to be an exciting place to start a business. While other regions have seen a dip in new businesses, Northern Ireland continues to stand out as a hub for opportunity, attracting entrepreneurs eager to take advantage of its unique access to both the GB and EU markets.

“Most importantly, this surge in start-ups has brought new opportunities for local people, contributing to a more diverse and vibrant economy as we head into 2025.”

April was the month with the highest number of start-ups in 2024, with 2,311 new firms launched. This was an increase of 44.7% compared to the previous year’s busiest month, November 2023, when 1,597 start-ups were launched.

READ THIS: Northern Ireland's space industry soars with major ESA Lunar contract

Ian, who is a director at Interpath Advisory, continued: “Northern Ireland’s tech sector in particular has seen significant growth over the past year, with businesses seizing new opportunities to innovate and expand. This tech boom has driven a surge in overall start-up numbers, not just compared to 2023, but also to 2022 when there were just over 8,300 new businesses launched across Northern Ireland.

“While the growth in start-ups is promising, it’s essential that directors of both new and established businesses remain vigilant to the first signs of financial distress. Supply chain disruptions, rising costs, and high energy prices are ongoing issues that no business is immune to, and it’s important that business owners seek advice as soon as these concerns start impacting cash flow or the business’s ability to pay its bills.

“Conversations around money can be extremely difficult, but by facing your problems early, you’ll have more time to think about your next steps and more potential options available to you for resolving your concerns.”