The number of new companies in the North West increased by 10% last year due to a record level of start-ups.

There are now 32,774 more businesses in the region than 12 months ago, bringing the total number of active businesses to its highest-ever level of over 347,200, says new research by the UK insolvency and re-structuring trade body R3.

The North West out-performed London, where the number of companies grew by just 6%.

Richard Wolff, North West chairman of R3, said that the figures reflect the start-up culture that has developed in the UK.

“People are becoming more entrepreneurial and are happy to run their own business — or more than one, in some cases!

“The technology sector commands the greatest attention, with a whole range of exciting and innovative start-ups.

“However, early-stage businesses are always more vulnerable to failure. With so many jobs dependent on start-ups, there needs to be greater emphasis on ways to support small firms and help entrepreneurs to develop better financial and management skills.”