According to research by Barclays and the Business Growth Fund (BGF), the number of new start-ups in the Midlands is still continuing to rise at a solid rate.
The Entrepreneurs Index from Barclays and BGF, a bi-annual series that tracks the UK entrepreneurial lifecycle, reported that the amount of companies starting up has grown by 8 per cent in the year to March 2015, reaching a total of 356,000 in the region.
It was discovered that the key driver in the overall growth was Birmingham’s powerful gaming sector, with 25 per cent of the UK’s gaming workforce is based in the city.
Also reported was the number of active companies which rose by 3.86 per cent and is the biggest rise since 2012 when the index started.
There were however some bumps along the way, as 188 deals were seen, with a wealth creation of over £200,000 over 12 months to the end of June 2015. This resulted in a 5.1 per cent decline on the same period previously.
The proportion of high-growth companies in the Midlands was at 19.8 per cent in the year to December 2014, which is a 2.4 per cent fall from 2013. Apart from Scotland, this was the greatest decline in the proportion of high growth companies of any region in the UK.
Regional Director at Barclays Wealth and Investment Management, Paul Keiser, commented: “The latest Index reveals that the Midlands start-up scene is strong, suggesting our region is continuing to show signs of positive growth and entrepreneurial spirit.
“Undoubtedly the burgeoning gaming sector in Birmingham plays an important role in this, as will have the boost in the number of skilled workers coming to the city, with Birmingham recently being named the number one city in the UK for young people leaving London.”
Gavin Petken, Regional Director of the Midlands at BGF, added: “As long-term equity investors in growing UK companies, we are excited by the size of the dynamics of the addressable market in the Midlands.
“It is very promising to see that the region has seen such a positive rise in the number of entrepreneurs starting up their own companies and I’m hoping their confidence will encourage other business leaders to pursue their own entrepreneurial ambitions.”
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