Birmingham stays UK’s regional start-up capital

MORE than 14,500 new businesses were created in Birmingham last year, making it the UK’s start-up capital outside London, according to new research.

But the figure of 14,509 is actually a drop of more than 4,000 on 2018 when 18,590 companies were created, according to the newly published report by think tank Centre for Entrepreneurs.

The city has claimed the top spot for locations outside the capital in each of the six years the report has been published but as Birmingham is the UK’s second largest city this is perhaps to be expected.

The findings are based on filings registered with Companies House.

Neil Rami, chief executive of inward investment agency West Midlands Growth Company, said: “Birmingham’s welcoming and aspirational enterprise culture has once again put it on the map as the UK’s regional start-up capital.

“Birmingham’s start-up scene rivals London on affordability and opportunity.

“Recent growth in the city’s flexible office market is complementing its dedicated Enterprise Zone programme and key accelerator initiatives such as the Innovation Birmingham campus.

“Looking ahead, the 2020s will be an exciting time for Birmingham’s enterprise community.

“The city will lead the roll-out of 5G technology across the UK and be in the global spotlight as it hosts the 2022 Commonwealth Games.

“With these major milestones on the horizon, there’s never been a better time to start a business in Birmingham.”

The research also said that more than 45,000 tech start-ups were launched across the UK in 2019, representing

6.6 per cent of all new businesses.

Companies were launched in more than 700 different industries, as varied as raising llamas and alpacas (ten new businesses), credit bureaus (23), driving schools (429) and repair of watches and jewellery (141). Food delivery start-ups and street food were also prominent with 14,363 new ventures created across the UK.

The top ten sectors for new business launches were: management consultancy; property letting and leasing; other service activities; business support; buying and selling of own real estate; IT consultancy; mail order and internet retail; freight transport; property development; and take-away food shops and mobile food stands.

Matt Smith, director of policy and research at the Centre for Entrepreneurs, said: “It is encouraging that, despite a politically turbulent year in which business confidence hit new lows, business formations continued to set records.

“It suggests that entrepreneurial spirit is well and truly embedded across the UK with entrepreneurs continuing to turn their ideas into action.”