The number of start-up businesses in Wales has fallen significantly since the referendum decision to leave the EU.
A new analysis of start-up activity across the nations and regions of the 海角视频 from Creditsafe聽 shows that聽 over a two year period since the referendum vote in June 2016, the number of new businesses in Wales declined by 18.56% - the biggest fall of any nation or region in the 海角视频.
The Midlands experienced the biggest increase with 21.24%.
The analysis is based on the percentage change in start-ups from May 2016 to April 2017, compared with the following financial year ending April this year.
Wales recorded 22,415 start-ups between May 2016 and April 2017, but dropped to 18,255 in 2018-2019.
Scotland and the South West were the only other parts of the 海角视频 to see a decrease over the same period, at 3% and 0.59% respectively.
The changes across the 海角视频:
- West Midlands聽 up 21.24%.
- Greater London up 13.42%.
- 聽Northern Ireland, up 13.08%.
- North East, up 9.99%.
- Yorkshire and Humberside, up 8.14%.
- East Midlands, up 5.92%.
- North West, up 3.98%.
- South East , up 2.33%.
- East Anglia, up聽 2.09%
- South West, down 0.59%,
- Scotland, down 3.25%.
- Wales, down 18.56%.
聽also gathered data on the number of insolvencies and found Wales to have had a 66% increase in insolvencies over the past three years.
聽It sits in the middle of the table, with Northern Ireland recorded as the region with the most insolvencies (up 114%), and the West Midlands as the region with the fewest (10.3%).
Ian Price, CBI Wales director said: 鈥淣ew data from聽Creditsafe聽is always hugely instructive and gives great insight into business conditions on the ground. Unfortunately the findings make disappointing reading for Wales, with it seemingly lagging behind other regions and nations.
"There鈥檚 a clear need to understand why these statistics suggest that entrepreneurship in Wales in Wales is stalling and how we can learn positive lessons from those parts of the 海角视频 that seem to be in a stronger position.
鈥淲e also need to check that Brexit is not having a more negative affect on Wales than on other 海角视频 regions.聽 A better understanding of the regional impact of Brexit uncertainty could be crucial, particularly as we continue to face the unappetising prospect of no deal and with so many questions left unresolved.鈥
Professor Roger Awan-Scully, head of politics and international relations at Cardiff University, said: 鈥淲e know that Wales is particularly exposed to the economic downside risks of Brexit, and this important new data suggests that it may already be suffering negative consequences. Given that Wales was already one of the economically weakest parts of the 海角视频, this news is very worrying indeed for the future鈥.
Chris Robertson, chief executive at聽Creditsafe,聽 said: 鈥淚t鈥檚 a real shame that Wales has seen an 18% drop in start-ups since Brexit was announced; while two other regions suffered a decrease the disparity between Scotland and Wales is quite alarming.
鈥淭hough there could be other factors at play, it seems fair to say that Wales has been hit the hardest by Brexit. While other parts of the 海角视频 are defying the uncertainty and riding out the storm, budding entrepreneurs in Wales remain cautious - perhaps waiting to see whether a no-deal Brexit will go ahead, and the implications that will have.
鈥淲ith one in 10 shops now empty we can only hope that economic stability resumes sooner rather than later, and with that the confidence for more people to start their own business.鈥
