Number of Midlands start-ups continues to rise – survey

RESEARCH by Barclays and the Business Growth Fund (BGF) has revealed that the number of new start-ups in the Midlands is continuing to rise.

The number of new companies setting up shop in the region grew by 8% in the year to March 2015 to reach a total of 356,000, according to the Barclays and BGF Entrepreneurs Index, a bi-annual series tracking the UK entrepreneurial lifecycle.

The report pointed to Birmingham’s strong gaming sector as a key driver of this growth, with 25% of the UK’s gaming workforce based in the city.

The boom in the number of businesses echoed a trend seen at a national level, where the number of active companies rose by 3.86%, the biggest rise since the index began in 2012.
 
However, it wasn’t all plain sailing in the Midlands as the report found that while the region saw 188 deals resulting in wealth creation of £200,000 or more over the 12 months to the end of June 2015, this equated to a 5.1% decline on the same period previously.

The report also showed that the proportion of high-growth companies in the region stood at 19.8% in the year to December 2014, representing a 2.4% fall from the previous year. This was the greatest decline in the proportion of high growth companies of any region in the UK, apart from Scotland.
 
Paul Keiser, regional director, Barclays Wealth and Investment Management, said: “The latest Index reveals that the Midlands start-up scene is strong, suggesting our region is continuing to show signs of positive growth and entrepreneurial spirit.

“Undoubtedly the burgeoning gaming sector in Birmingham plays an important role in this, as will have the boost in the number of skilled workers coming to the city, with Birmingham recently being named the number one city in the UK for young people leaving London.”

Gavin Petken, regional director, Midlands, at BGF added: “As long-term equity investors in growing UK companies, we are excited by the size and dynamics of the addressable market in the Midlands. 

“It is very promising to see that the region has seen such a positive rise in the number of entrepreneurs starting up their own companies and I’m hoping their confidence will encourage other business leaders to pursue their own entrepreneurial ambitions.”