North West home to just 8% of fast-growing e-commerce businesses

In law firm Berg’s E-commerce Power 50 – a list of the UK’s online businesses with the fastest-growing sales over the previous three years – the region supplied just four entrants, or 8% of the total.

 

By contrast, London and the South East contributed 32 businesses, or 64% of the list. The South West had six companies (12%) in the Power 50.

 

Manchester-based Berg said the data, supplied by Experian, demonstrates the importance of the North West acting now to close the gap with other regions when it comes producing high-tech firms.

 

Tim Leigh, of Berg’s e-commerce and technology team, believes the research indicates that London and the surrounding areas are acting as a magnet for tech-savvy businesses and other regions must act now if they are to close the North-South divide.

 

Mr Leigh said: “We know that London has the upper hand when it comes to e-commerce and technology businesses but this research highlights how other South East areas, such as Surrey, Hampshire and Kent, also attract these fast-growing companies. E-commerce businesses need first-class infrastructure, particularly high-speed broadband, which is far easier to find in the South East. 

 

“The beauty of e-commerce businesses is that they can be set up from a bedroom or small office, but high-speed broadband coverage is patchy and only certain locations have the super-fast internet connectivity for them to operate.

 

“We would like to see the government and local authorities, along with private sector ISPs, prioritising the roll-out of high-speed broadband in smaller towns and cities so that the UK becomes a more even playing field for those setting up e-commerce businesses.”