Regional enterprise contesting London’s crown
London’s crown as the UK capital of microbusiness density is coming under threat from areas outside the capital following rapid growth in regional entrepreneurship, according to new figures published today.
The findings come from Venture Forward, a multi-year international research initiative by GoDaddy, that analyses data from more than half a million digital microbusinesses in the UK, typically defined as having 10 employees or fewer. Each constituency is awarded a microbusiness density score, relative to local population sizes.
London’s first challenger emerges
After two years of consistent growth, Stoke-on-Trent South now ranks in second place nationally for microbusiness density with a score of 14.02 small firms for each 100 residents. The Cities of London and Westminster constituency continues in first place overall with microbusiness density score of 22.48.
St Albans also entered the top 10, debuting in third place with a score of 9.28. This is the first time that any constituency outside of London has placed in the top 10. Alternative business centres are also climbing the ranks with Bristol West (3.80), Hove (3.60), and Manchester Central (3.50) all placing withing the top 20.
The centre holds, for now
Though London is still home to eight of the top 10 areas for microbusiness density, a wider shift is occurring within the UK’s entrepreneurial landscape.
In fact, all of the top 20 fastest-growing constituencies for microbusiness density were outside of the capital. Wentworth and Dearne witnessed explosive growth of 500% year-on-year and now has a score of 1.88 microbusinesses for each 100 residents.
Several other regions saw impressive entrepreneurial development, with Rayleigh and Wickford (+311%), Arfon (+253%), Brecon and Radnorshire (+225%), and Loughborough (+207%) all appearing in the top five fastest-growing constituencies.
Andrew Gradon, head of GoDaddy UK & Ireland said: “Whilst London has long been considered the centre of business and commerce, our Venture Forward data has consistently demonstrated that rapid growth is taking place across the UK.
We’re now starting to see the impact of that with Stoke on Trent South being the second highest-ranking constituency for microbusiness density, and constituencies in Manchester and Bristol climbing the ranks.
We know the power that microbusinesses have to improve economic outcomes of communities – boosting average wage growth and employment at a local level – so this trend is really encouraging to see.”
