More than 3,200 new Scottish businesses were set up last month, according to new research from R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe shows that 3,280 new firms were set up in Scotland in May 2023 – 229 more than the previous month’s total of 3,051.

Start-ups in Scotland also rose 6.5% year-on-year from May 2022’s total of 3,081 – the fourth highest yearly increase of all the nations and regions in the UK, falling only behind Northern Ireland (25.3% rise), Greater London (17.5% rise) and East Anglia (12.2% rise).

Richard Bathgate, chair of R3 in Scotland, says: “These new figures continue the impressive surge in start-ups we’ve seen so far this year – with numbers rising every month except for April 2023.

“Scotland’s heritage in traditional sectors like construction and oil along with developments in digital and tech make it a great place to do business and it’s fantastic to see the country being so entrepreneurial.”

Bathgate, a Restructuring Partner at Johnston Carmichael in Aberdeen, added: “However, directors should always take early action if they see signs of financial distress in their business.

“If you’re noticing declining sales, have cash flow concerns, or are seeing debts mount and stock levels rise, then those are all indicators it’s time to seek help.

“Speaking to a qualified professional early will give you more potential options to resolve your situation and more time to decide about your next step than if you wait for the issue to get worse.”