The number of high-tech companies founded in the North West rose 14% last year, but the growth rate was lower than a year earlier, with analysts suggesting funding issues may be to blame.
Audit, tax and consultancy firm RSM UK has analyzed the number of technology companies set up across the UK in 2023. According to the study, the number of new businesses across the UK increased by 22% from 41,972 in 2022 to 51,017 in 2023. Despite broader economic challenges, the technology sector remains resilient. ”
Subsectors that have experienced significant growth include software developers, data businesses, and IT consultancies.
Nick Wyatt, head of technology at RSM North West, said: “While it’s great to see another strong year for company formations in the North West, which ranks fourth nationally compared to other regions, there has been a noticeable slowdown. “This was an increase of 14% compared to the previous year.” Last year in this region he increased by 34%, and this year on the national average he increased by 22%.
“The unavailability of debt financing from lenders, especially for start-ups and SMEs, undoubtedly had an impact on the number of start-ups in 2023. It is important to support start-ups by ensuring ‘growth and innovation in this sector. ”
All countries and regions in the UK saw year-on-year increases, with the exception of Wales, where the number of technology company formations fell by 9%. In London, the number of high-tech companies rose by 26% to 26,060.
Ben Bilsland, Partner and Senior Technology Industry Analyst at RSM UK, said: “Our research proves the resilience of the UK technology sector despite global challenges. “The increase in companies shows there is reason for optimism in this key industry.” While AI cannot be ignored as the driving force behind UK technology companies, particularly those working with data, there are other factors to consider.
“London sees itself as a world-leading authority in technology, and that strength is reflected across the UK by a vibrant and energetic sector that consistently supports early-stage businesses. However, the sector has been and continues to experience significant attrition, which could lead to further decline in the sector. Because they have confidence, which drives the company’s growth.
“If this trend is to continue, governments have an important role to play. It is important to make valuable resources, including AI computing, available to universities and early stage entrepreneurs. “Financing and policy changes, including innovation relief to guarantee companies” It will help you plan.”
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