Fall in the number of new start-up firms in Wales

R3 has published its latest quarterly business health report for Wals

New company registrations in Wales fell in the second quarter of this suggesting business confidence remains subdued despite a reduction in insolvency-related activity, according to an R3 report.

The latest quarterly business health report from the membership body for insolvency professionals, based on data from Creditsafe, found that 4,922 new companies were registered in Wales during Q2 2026, a 15% decrease on the same period last year (5,796) and an 8% fall compared to the previous quarter (5,330).

While fewer new businesses were launched, the number of Welsh companies entering insolvency-related processes also declined. There were 191 insolvency-related activities in Q2 2026, 22% lower than the same period last year (245 cases) and 10% lower than the previous quarter (212).

More recent figures suggest business pressures have continued, with Insolvency Service statistics showing company insolvencies in England and Wales increased by 5% in July, compared to the previous month, rising to 1,931 cases.

For the UK as a whole company registrations falling by 6% year-on-year to 184,873 in Q2 2026 and by 2% compared to the previous quarter. Insolvency-related activity has also declined nationally by 6% compared with Q2 2025, falling to 6,854 cases.

Bethan Evans, chair of R3 in Wales, said: “The report suggests that while business distress has eased across Wales, many entrepreneurs and business owners are continuing to take a cautious approach to growth and investment.

‘The reduction in insolvency-related activity is encouraging and reflects the resilience shown by many Welsh businesses. However, the significant fall in new company registrations suggests that economic uncertainty continues to influence decisions around starting a new venture.

‘Businesses are still facing a range of pressures, including increased operating costs, ongoing economic uncertainty and changing consumer demand. These challenges can affect confidence and make it harder for firms to plan and invest for the future.”