Key data & context
- According to analysis by audit & consulting firm RSM UK, in Q2 2025 the North West saw 1,111 new technology company incorporations, up 27 % from 877 in Q2 2024 and up 17 % from 948 in Q1 2025. (Insider Media Ltd)
- More broadly: data covering “new business launches” (not just tech) indicate that 33,000 new businesses were created in the North West in 2023, with the region’s business birth rate at 11.6 % (second only to London at 12.6 %) according to ONS–based reporting. (Insider Media Ltd)
- The region’s new-business creation in 2023 was cited at 80,404 firms in one source (from R3 / Creditsafe) for all sectors in the North West — a 7.7 % increase from the 74,658 set up in 2022. (Lancashire Business View)
- Tech-sector growth in the region is part of a broader UK story: Regions outside London are seeing greater relative growth in startup/incorporation numbers. For example, in the first half of 2025, the North West recorded a 16.5 % rise in new companies. (BEYOUROWN)
What’s driving it
Several factors seem to underpin this rise:
- Entrepreneurial resilience despite headwinds: The RSM commentary notes that tech entrepreneurs in the North West appear to be adapting to continued uncertainty (inflation, supply-chain disruption, shifting regulation) and “getting on with” founding new ventures rather than waiting for conditions to stabilise. (Liverpool Chamber of Commerce)
- Regional ecosystem strength: The North West (particularly around cities such as Manchester and Liverpool) has built up a tech/startup ecosystem: universities, incubators, accelerators, co-working hubs, and VC presence. For instance, a white paper noted that Liverpool has seen a 657 % increase in VC investment since 2019. (Kao Data)
- Cost & talent advantages relative to London: While London remains dominant, many start-ups are choosing regions like the North West because of lower overheads, and good access to tech talent, particularly with nearby universities. Some earlier figures (2020/21) already showed the North West outpacing national average growth in new business creation. (UKTN)
- Policy / infrastructure support: While not always explicitly singled out in the data, the growth suggests that regional/ national policy — e.g., support for R&D, urban-regeneration, digital hubs — may be playing a role. The interplay of cost, talent, and infrastructure is likely facilitating the rise.
- Shift to decentralised tech geography: There is a broader UK-tech trend of growth outside London and the South East. The North West appears to be a beneficiary of this “regional tech growth” shift.
Case studies & regional highlights
• Manchester & Greater Manchester
- The Greater Manchester area was reported to contribute over 14,500 new enterprises in 2023. (Marks Clerk)
- Manchester city alone saw 3,630 new businesses in 2023. (Marks Clerk)
- The region is also attracting large tech operations: e.g., global tech firm Google opened its second UK headquarters in Manchester (in the NOMA district) in February 2024. (white-paper note) (Kao Data)
• Liverpool & surrounding
- A white-paper referenced that the region (Liverpool & North West) has around 92,610 active businesses operating (in that locale) and has seen very large VC investment growth. (Kao Data)
- The new business formation data (80,404 new firms in 2023) in the North West suggests a broad base of entrepreneurial activity, many likely micro/early-stage firms. (Lancashire Business View)
What this means — opportunities
- The surge in tech company formations in the North West is a positive signal for regional economic dynamism: more founders, more innovation, more potential job creation in higher-value sectors.
- With increased start-up activity, the region may attract more investment, more talent, and more supportive services (legal, financial, tech talent).
- The rise counters the “London-centric” narrative of UK tech and helps the UK fulfill more of a “nation-wide tech ecosystem” model.
- It suggests scope for policy makers to lean into the momentum: e.g., by improving scale-up infrastructure (not just seed), ensuring regional venture funding, supporting talent pipelines, and addressing infrastructure bottlenecks.
What to watch — risks & constraints
- Survival / scale-up challenge: While many firms are being founded, the question remains how many will scale, survive beyond early years, and go on to significant impact. (The startup birth-rate is high, but survival rates are typically lower.) For example, one article noted only ~30 % of new businesses in the region survive to five years (vs ~40 % national average). (Insider Media Ltd)
- Funding gap: Early-stage formation is rising, but the ability to raise series A/B funding, attract large institutional investment, or go global remains more constrained in regional tech clusters compared to London. Without access to scale-up capital, many may stall.
- Talent & infrastructure bottlenecks: As growth happens, talent competition will intensify — particularly for specialised tech skills (AI, machine learning, deep tech). Infrastructure (office space, connectivity, transport) may become pressured if growth accelerates.
- Economic / policy headwinds: Macroeconomic uncertainty (inflation, interest rates), regulatory changes (tax, R&D incentives) and global tech competition could dampen momentum. The RSM commentary flagged that investment delays had earlier cooled tech growth. (Liverpool Chamber of Commerce)
- Regional imbalance: Although the North West is doing well, there may still be disparities within the region (urban vs rural, connectivity, ecosystem maturity) that could limit equitable growth.
Expert/commentary snippets
- Darren Griffin (Head of Technology for RSM in the North West) commented:
“This surprising jump in new tech incorporations to a record high suggests that, despite the numerous headwinds, tech entrepreneurs and business leaders in the north west are getting used to dealing with an uncertain world.” (Liverpool Chamber of Commerce)
- Ben Bilsland (Partner and Head of Technology Industry at RSM UK) noted:
“… significant investment is needed, and if economic uncertainty escalates, this will act as a roadblock to future tech growth.” (Insider Media Ltd)
- From the R3 commentary on 80,404 new firms in 2023:
“Amidst tough economic challenges like high inflation… tens of thousands of entrepreneurs in the North West embraced the opportunity to launch new businesses last year.” (Lancashire Business View)
Broader significance
The strong growth in startup activity in the North West has wider implications:
- Regional tech-growth redistribution: The UK’s tech-ecosystem geography is evolving — more activity outside London / South East means greater national distribution of innovation and economic benefits.
- Levelling-up / regional development: For government policy (particularly the “Levelling Up” agenda), the North West’s startup surge provides positive fodder — regionally rooted tech growth can help job creation, uplift wages, and diversify local economies.
- Talent and skills pipeline: With more tech firms forming, there will be increased demand for tech-skills, STEM graduates, and infrastructure — universities and training providers in the North West are likely to see pressure/opportunity.
- Potential for global competitiveness: If start-ups in the North West succeed in scale-up, export, and innovation (AI, fintech, deep tech), the region could become an international tech hub in its own right, not just a follower region.
- Policy & investment signals: Investors paying attention to where new companies are forming may increasingly look to the North West. Similarly, policy makers may redirect more support/funding to regional clusters outside London.
Summary
In short: the North West is experiencing a record-level ramp-up in tech company formations, particularly in Q2 2025 (1,111 new tech companies in that quarter alone), following strong business-birth rates in 2023 and earlier. The region’s ecosystem, cost/talent advantages, and entrepreneurial culture appear to be combining to produce this surge. While the upswing is encouraging, the real test will be how many of these start-ups scale and contribute to sustained regional economic growth.
Here are some detailed case studies and commentary on the surge in tech-start-ups in the North West England region — covering what’s going on, founding stories, ecosystem aspects, and expert views.
Case Study 1: Record Q2 2025 tech company incorporations
In the second quarter of 2025, the region recorded a record number of new technology company incorporations: 1,111 new tech companies — up 27 % year-on-year (from 877 in Q2 2024) and up 17% on the previous quarter (948 in Q1 2025). (Insider Media Ltd)
Head of Technology for RSM UK in the North West, Darren Griffin, commented:
“This surprising jump … suggests that, despite the numerous headwinds, tech entrepreneurs and business leaders in the north west are getting used to dealing with an uncertain world.” (Insider Media Ltd)
RSM also noted that while new business formation is strong, investment and scale-up remain crosswinds: “significant investment is needed, and if economic uncertainty escalates, this will act as a road-block to future tech growth.” (Insider Media Ltd)
Key take-aways:
- The region is outperforming itself historically in tech startup formation.
- Founder mindset seems to have shifted: rather than waiting for ideal conditions, they are launching despite uncertainty.
- However, caution remains: formation is one thing; growth, funding, survival are different.
Implication for you (if you’re interested): If you’re looking to tap into the startup ecosystem (as founder, employee, investor, or partner) in the North West, this suggests strong activity levels right now—especially in early-stage founding.
Case Study 2: Wider business-birth strength + ecosystem foundations
Beyond just tech companies, the North West shows strong business creation overall:
- In 2023, the region launched approximately 33,000 new businesses. (bionow.co.uk)
- The region’s business birth rate was 11.6% (just behind London’s 12.6%). (Marks Clerk)
- Within the region, the Greater Manchester area contributed over 14,500 new enterprises in 2023, and the city of Manchester alone saw 3,630 new business births. (Marks Clerk)
Supporting ecosystem features: - According to a white-paper on the North West, Greater Manchester had “more than 10,000 tech and digital businesses” in the city-region, and was positioned as a contender for the UK’s “AI Growth Zone”. (Kao Data)
- Liverpool and its region likewise showed strong growth: the white-paper noted Liverpool’s tech/VC ecosystem saw a 657% increase in VC investment since 2019. (Kao Data)
Commentary:
The underlying ecosystem seems to be mature enough to support high startup formation: universities, tech talent, digital infrastructure, local investors, and dedicated regional support.
But there is a caution flag: The same sources note survival rates: e.g., only ~38% of companies founded in 2015 in the North West were still active after five years. (Manchester Digital)
This emphasises: many companies start, but fewer sustain, scale, succeed long-term.
Commentary & Expert Views
- Darren Griffin (RSM) remarked on both the positive “we’re forging ahead” attitude, and the risk that uncertainty still remains a drag: “It will be interesting to see if this trend continues into Q3.” (Insider Media Ltd)
- Ben Bilsland (Partner, RSM UK) warned: “If economic uncertainty escalates, this will act as a roadblock to future tech growth.” (Insider Media Ltd)
- A taskforce article (on the Wired for Growth taskforce in the region) noted the region’s start-up growth is strong but longevity remains an issue: “just over 38% of companies set up in the North West in 2015 are still active five years later”. (UKTN)
- The NatWest / Beauhurst “New Startup Index” found the North West had a 16.5% increase in new company formations in H1 2025 compared to H2 2024. (NatWest Group)
Interpretation of commentary:
Startups are being founded in greater numbers than before, signalling positive momentum. But the ecosystem is shifting from just formation towards scale, funding, retention. Founders and policymakers are aware of this next phase challenge.
Also, the regional dimension matters: growth is increasingly outside London; regions like the North West are contributing significantly to the UK’s tech startup ecosystem.
Implications & “What this means”
- For founders: The North West looks like a good location to launch a tech venture right now — strong ecosystem, growing momentum, and supportive environment. But you’ll want to plan not only for launch but for survival/scale.
- For investors: There’s a growing deal-flow regionally; opportunities to get in early. But make sure due diligence covers challenge of scale, funding rounds, talent retention.
- For policymakers/accelerators: The data suggest success in stimulating the “birth” phase; now a key focus must be on the “growth” phase (scale-ups, funding, exiting, retaining talent).
- For regional economy: A higher formation rate could lead to job creation, increased digital capacity, and more innovation hubs, which supports “levelling up” and regional economic diversification.