While London remains the most active area in the UK for business growth, a growing number of entrepreneurs have turned away from the capital in order to pursue ventures elsewhere. This has seen start-up growth boom in regional areas, with the Northern corridor in particular becoming home to a wide range of new businesses and fuelling demand for commercial property.
The Northern corridor, or the area running from Liverpool and Manchester to York, has become very popular for budding entrepreneurs thanks largely to the prowess of local universities, according to Barclays chief executive Antony Jenkins. A recent report compiled jointly by the bank and the Economist Intelligence Unit has revealed that new business owners are attracted to areas with good local universities, a supportive local government and access to grants.
Yet in order for the success demonstrated in the Northern corridor to expand into wider regional areas, Mr Jenkins explains, initiatives introduced in the area must be replicated elsewhere.
He says; “Entrepreneurs will thrive across the UK if conditions are put in place that allow them to do so.
“This research shows that business, the education sector and the Government can all do more to create thriving entrepreneurial ecosystems across the UK.
“The Northern corridor is an example of a successful hub establishing itself outside London and the South East – the challenge now is for all interested parties to do more to create those conditions elsewhere.”
The connection between good local universities and buzzing entrepreneurial hubs has been recognised for some time, as not only can students gain information about establishing their businesses during their studies but also have access to a wider variety of skilled jobs upon graduating. In turn, this benefits start-ups as they are able to recruit from a wider pool of talent and this can select candidates to train up in order to benefit their business.
Yet chief executive of Manchester-based digital marketing agency Madhouse, Phil Rogerson, believes that the city’s excellent transportation links have also played a part in building the entrepreneurial Northern corridor. At present, Manchester remains the only airport in the UK outside of London with a direct link to Hong Kong, allowing SMEs in the area access to the lucrative Asian exports market whilst simultaneously enabling interested Chinese investors to visit the area.
However, Mr Rogerson concedes that students choosing to remain in the area, rather than heading to the capital to find work following graduation, has also played a major role in Manchester’s entrepreneurial success.
He says; “The population has grown by a fifth in 10 years, which is due to international talent coming in and linked to the university and airport; the BBC’s new media city has also helped.
“There are now 26,000 professional services jobs in the area, those lawyers, consultants and accountants are servicing a spurt of small and mid-sized growth businesses.”
How do you think regional areas could replicate the success of the Northern corridor – is it a matter of improving transport links or focusing on graduate placements to encourage talent to stay on after graduation?
