Enterprise zones have proven invaluable in providing support for small start-up firms, with the business rate breaks, low rental costs and good locations encouraging more entrepreneurs than ever before to take the plunge and launch their own businesses. However, the scheme has also benefited numerous local communities, with the resulting rise in employment and growth in the local economy providing a more secure future for families in surrounding areas.
A new report has revealed that the West Midlands has particularly benefited from the EZ scheme, with initiatives in Birmingham and the Black Country combined having created more than 3,000 jobs for local residents. These enterprise zones have contributed strongly to overall results from the 24 allocated areas within the UK as a whole, which have to date created 12,530 jobs, attracted more than £2 billion worth of private investment and provided space for 434 new and growing businesses.
As a result, board director for the Greater Birmingham and Solihull Local Enterprise Partnership, Chris Webster, has revealed that the existing scheme will be built upon to provide more business space and employment potential in future.
He says; “This announcement is great news in that it clearly demonstrates that the enterprise zone is gaining momentum and delivering on our plans and all the investment designed to generate jobs and growth.
“In July this year we announced an extension to the EZ investment plan from the original figure of £128 million to £275 million, with the long term goal of creating 40,000 new jobs.
“In addition, the plans have been designed to generate a further £2 billion for the local economy and create 1.4 million square metres of floor space and 26 city centre sites.”
Although the economy is certainly in a better position than it was just one year ago, the failure rate of small businesses remains high, with around half of start-ups expected to fail in their first five years of trading. One of the key issues standing in the way of entrepreneurial success is the fact that both business rates and rents remain close to record highs in many major metropolitan areas – hence the need for further investment into the enterprise zone scheme.
The West Midlands has proven extremely resilient in terms of economic prowess, with the recent boom in manufacturing and construction creating thousands of jobs throughout the region. However, with commercial property prices rising sharply as the commencement of the HS2 rail link project draws closer, it is encouraging to see many local enterprise partnerships committing themselves to continuing to provide affordable accommodation for SMEs.
Chairman of the Black Country Local Enterprise Partnership, Stewart Towe, highlights the role the enterprise zone has played in bringing manufacturing back to the West Midlands.
He says; “The recent opening by the Queen of the JLR Engine Manufacturing Centre and International Security Printers’ new building is a ringing endorsement of the i54 part of the Black Country Local Enterprise Partnership’s enterprise zone.
“The enterprise zone has been very successful in attracting advanced manufacturing companies which have created 2,000 skilled jobs.”
Do you think the money used for enterprise zones could, or should, be used to lower the business rates bill for all UK firms?
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