New research by SME insurance provider, Superscript, has identified Plymouth as the ninth most entrepreneurial city in the UK for 2022.
Analysing new data released by the Office for National Statistics, Superscript calculated that between 2021 and 2022, the number of small businesses (with up to 49 employees) in Plymouth increased by 265, representing a 4.5% uplift. Cross-referencing this with the latest population figures gave Plymouth a ‘small business per capita’ score of 0.10. This is in contrast to the national trend, with the amount of small businesses across the UK decreasing by 83,000.
Completing the list of the top ten most entrepreneurial cities, in order of position, were Wolverhampton, Worcester, Carlisle, Hull, Norwich, Cardiff, Stoke-On-Trent, Sheffield, and Southend.
So, why are small businesses setting up now? Superscript’s nationally representative survey of 1,000 new small business owners suggests that the cost-of-living crisis seems to be a factor behind a lot of new businesses. Seven out of ten respondents (70%) to the survey agreed that the cost-of-living crisis spurred them to start a business to supplement their salary. Meanwhile, 72% indicated that they set up a business because of the potential to earn more than their current job.
The survey also suggests that the right infrastructure (15%), access to talent (15%), and it being where entrepreneurs already live (14%) are the most influential factors behind small businesses setting up in the locations they do. Entrepreneurs believe their local areas can be most improved through more government funding for local infrastructure (28%) and lower commercial rents (21%). 84% said that they feel positive about the future of their business despite the macroeconomic challenges.
Cameron Shearer, Co-founder and CEO of Superscript, said:
“Congratulations to Plymouth for being ranked as the ninth most entrepreneurial city in the UK! Plymouth didn’t make the top 10 in 2021, so the way it has embraced entrepreneurship in the last year is even more impressive against the backdrop of a national decline in small businesses.
“It’s a tough time for entrepreneurs right now, but history teaches us that challenging times are when great ideas and innovations are born, with businesses evolving quickly. That is why flexibility and customisation have become the most important insurance requirements of small businesses coming to us for cover.”
Jackie Mulligan, Founder of ShopAppy - an online platform for local shops - and Government High Street Task Force Expert, said:
"The shift of our high streets to more experiential places is a positive opportunity for hospitality businesses in particular. It is clear that the growth of businesses in these locations is also connected to positive efforts by local partners (councils and business improvement districts), strong, supportive communities and effective business networks - all key for entrepreneurs in this challenging climate for local economies"
Jon Walton, CEO Plymouth Waterfront Partnership (BID) said:
“ Plymouth is a hugely collaborative city that supports innovation, it is testament to this that we appear in the top 10 and we are of course delighted! Salumi is just one of many such businesses that are doing so well in our Ocean City. We provide an all year round events programme to drive footfall and awareness and support our businesses in anyway we can”
To see the full full research, methodology and resources for local entrepreneurs in these areas, visit: www.gosuperscript.com/most-entrepreneurial-locations