Number of start-ups launched in Northern Ireland drop by staggering 57.7%, new research shows
R3’s analysis of data provided by Creditsafe shows 879 firms were set-up in Northern Ireland in January 2025 – a fall of 57.7% compared to January 2024’s figure of 2,077
The number of start-ups launched in Northern Ireland dropped by more than half in January 2025 when compared to January 2024, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows 879 firms were set-up in Northern Ireland in January 2025 – a fall of 57.7% compared to January 2024’s figure of 2,077.
This was the largest yearly percentage decrease in start-up numbers when compared to the other UK regions and nations, followed by the South West (26.1% fall), Greater London (23.8%) and East Anglia (20.8%).
Ian Leonard, chair of R3 in Northern Ireland, said: “There are a combination of factors that have likely influenced this sharp drop in start-up numbers, with wider business and economic uncertainty playing a key role. We’ve seen a fall in consumer confidence in recent months, and when confidence is low, people are naturally more hesitant to take the risk of starting a new business, especially in sectors that depend on discretionary spending.
“At the same time, rising costs remain a significant challenge for businesses of all sizes. Higher overheads make it harder for new ventures to get off the ground, and the Autumn Budget’s increase in national insurance and staff costs will only have added to these pressures.”
Despite the year-on-year decline, start-up figures were 25% higher in January 2025 compared to January 2023’s figure of 703, and 25.6% higher than January 2022’s total of 700.
Ian, who is a director at Interpath Advisory, continued: “Although the year-on-year drop in start-ups is significant, Northern Ireland saw a particularly strong wave of business creation throughout 2024, despite the challenges of rising costs and economic and political uncertainty.
“What we could be seeing now is the start of a sustained slowdown as activity returns to more typical levels, but at this stage, it’s too early to say for certain. We will need to watch the numbers over the coming months to get a clearer picture on whether this is a temporary dip or the beginning of a longer-term trend.
“Times are still tough for businesses in Northern Ireland. My advice to anyone who runs a business, whether new or long-established, is to know your business inside out and if you spot an issue, seek help as soon as you can. There are many options out there for businesses that are struggling, but those options become fewer if you don’t move quickly and seek advice before the problem spirals out of control.”