Birmingham named most entrepreneurial city outside London
Birmingham has been named the most entrepreneurial city in the UK outside of London, according to new figures from the Government-based Start Up Loans Company.
Data from lender shows Birmingham topping a list of areas outside the capital in terms of fledgling firms taking up its investment.
The top ten areas are based on local authority boundaries – including city boroughs – that secured the highest amounts of start-up funding in 2016. The figures exclude lending to London-based start-ups, which secured £23m in total.
Firms in Birmingham snapped up just over £2m in funding from the loans company. Surprisingly, Cornwall came next with entrepreneurs there taking up £1.3m.
Businesses in the north of England were also keen to take up the funding offers, with Durham, Sheffield, Leeds and Manchester all featuring in the top ten.
Start-ups across the top four highest northern cities racked up a total of £4.2m in funding during 2016 – overtaking southern equivalents in Cornwall, Bristol and Bournemouth, which collectively received £3.2m.
Durham was the top ten’s fastest growing entrepreneurial city borough, with start-ups securing £1.2m in 2016, 243% above the previous year (£355,888).
Stourbridge MP and Small Business Minister, Margot James, said: “From retailers in Birmingham to beauticians in Glasgow, Start Up Loans give people the chance to be their own boss, wherever they are in the country. The UK has an excellent record in creating businesses and we want to make sure start-ups outside of London can access the finance they need.”
Tim Sawyer, CEO of The Start Up Loans Company, added: “The Northern Powerhouse is steaming ahead when it comes to entrepreneurial spirit, but we can’t neglect the fact that start-up growth outside of London is being led by businesses in Birmingham.
“A boost in government and private funding for infrastructure and industries in former manufacturing hubs like Durham has brought with it a renewed start-up fever north of the capital. And the region is sending out a strong message that it’s open for business. We can’t deny that London is a strong start-up hub, but it’s encouraging to see a regional spread of start-ups popping up.”
He said the data showed there was no particular start-up ‘type’. Many of the loan recipients were not aspiring to be the next tech-giant, but they did want to pursue a career as their own boss.
“Motivators can vary from wanting a better work life balance, the opportunity for an improved income or the desire to turn something they love into a career,” he said.
