Research by Lloyds Bank Business Insurance reveals strong new business growth in the East Midlands with 20% more businesses in the region in 2016 than in 2010. The growth in new enterprises has been largely fuelled by the professional, scientific and technical sector.
According to insights from the report, the number of businesses in this sector grew by 37% between 2010 and 2016. In fact, almost a quarter (23%) of all new businesses set up in the region over this time period were in this sector.
The East Midlands region has enjoyed much investment in recent years, which may explain this impressive growth. One example is the Boots site being given Enterprise Zone status by the UK government in 2011, which provides specific incentives to encourage the creation of new businesses, including tax relief.
This growth looks set to continue, with a number of major regeneration projects on the horizon, bringing a great range of opportunities for investors. These include the Intu Broadmarsh shopping centre, the Island site (a mixed-use development site), a £100m transformation of the Guildhall site, which will be a mixed use scheme, and the Boots Enterprise Zone, which will bring together a centre of health, wellbeing and beauty alongside residential developments.
Damien McGarrigle, head of business insurance at Lloyds Bank Business Insurance, said: “Our report has uncovered strong business growth in the East Midlands over the past seven years and it’s great to see investment in infrastructure benefitting so many business types.
“While this growth creates new opportunities for entrepreneurs in the region, it also means new challenges. Starting a business can be a daunting process and getting to grips with legal requirements, finances and insurance can be a minefield.
“Getting the right advice will help start-ups get off to a flying start and safeguard their businesses to avoid being exposed to potentially irreversible damage. Today, a business’ key assets can be anything from data to intellectual property, along with materials and machinery, so these business-critical assets should be protected”.
The five highest growth sectors for new business formation in the East Midlands between 2010 and 2016 were professional, scientific and technical (22.8% of overall change in business population); administrative and support service activities (21.2%); human health and social work activities (9.2%); transport and storage (8.3%); and information and communication (7.4%).
Lorraine Baggs, head of inward investment at Invest in Nottingham, said: “Nottingham city and the wider region has the full package when it comes to attracting inward investment. There have been some big movements on some of the major investment sites recently, which demonstrate the fast-paced and confident direction in which Nottingham’s regeneration projects are heading”.