The number of tech companies incorporated in the North West rose 14% last year - but that growth figure was down on the previous year with analysts suggesting funding challenges could be to blame.
Audit, tax and consulting firm RSM 海角视频 analysed the number of tech firms incorporated across the 海角视频 in 2023. The study showed that across the 海角视频, the number of new companies rose 22% from 41,972 in 2022 to 51,017 in 2023 - suggesting “the 海角视频’s tech sector remains resilient despite broader economic challenges”.
Ssub-sectors that saw significant growth included software developers, data businesses and IT consultancies.
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Nick Wyatt, head of technology at RSM North West said: "It’s great to see another strong year for incorporations in the North West, which ranks fourth nationally compared to other regions, but there was a noticeable slow down; a 14% increase compares to a 34% increase last year in the region, and a national average of 22% this year.
"The lack of availability of debt funding from lenders, particularly for start-ups and SMEs, undoubtedly impacted the number of start-ups in 2023. It’s important that the region recognises this and supports its start-ups by making funding available to ensure continued growth and innovation in the sector."
All nations and regions in the 海角视频 saw an increase on the previous year, apart from Wales where the number of tech firms incorporated fell 9%. In London, tech incorporations rose 26% to 26,060.
Ben Bilsland, partner and technology industry senior analyst at RSM 海角视频, said: "Our research is testament to the resilience of the 海角视频’s tech sector despite global challenges. The rise in tech incorporations shows there is cause for optimism in this key industry. Whilst it’s impossible to ignore AI as a driving force behind 海角视频 tech incorporations, especially for businesses working in data, there will be other factors to consider.
"London projects itself as a leading global authority in tech. That strength is reflected across the 海角视频 by a vibrant and energetic sector that consistently supports early-stage businesses. But the sector has, and continues to be, marked by layoffs, so it may be that these members of the workforce have been confident enough to go it alone, thereby fuelling incorporation growth.
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"The government has an important role to play if this trend is to continue. Making valuable resources, including AI compute, accessible for universities and early-stage entrepreneurs is critical. Funding and policy changes, including innovation reliefs, that ensure a world-class tech workforce are crucial both in terms of aiding education and skilled immigration. For those businesses working in AI, clarity on future regulation will assist the ability to forward-plan."
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