Since the start of the recession, British businesses have struggled thanks to a combination of minimal funding and a plunge in consumer confidence. However, SMEs continued to spring up throughout the period largely due to a lack of full time jobs causing increasing numbers of workers to turn to self-employment.
Nottingham, for example, managed to break its own record with company support business Duport revealing that 3,762 companies registered in the city last year. This includes businesses across all sectors and industries, from one man enterprises to larger firms with a number of employees on the roll, and makes for a 6.7 per cent rise when compared to figures from 2011.
While this is not exactly on a par with the national average of an 8.6 per cent increase, it is certainly a positive step forward for entrepreneurs in the area.
Furthermore, although 2,342 businesses liquidated in the city throughout the same period, Nottingham managed to add a total of 1,420 businesses to the company register. This is an increase of 388 when compared to 2011 – another sign that the city is headed in the right direction.
The increase in start-ups in Nottingham can largely be attributed to the level of support SMEs and entrepreneurs receive in their first year of trading. A partnership between the private and public sector, known as the Nottingham Growth Plan, analyses factors such as the city economy and challenges facing small businesses to assess how local stakeholders can push for financial growth.
Schemes included under this umbrella include the Local Enterprise Zone, the Creative Quarter, based around a cluster of commercial properties in the city’s Lace Market and Hockley areas, and a £5,000 support package provided by the University of Nottingham. This provides a financial backbone for 100 start-ups as well as giving them the skills they will require to succeed.
Councillor for jobs, skills and businesses Nick McDonald says; “If the economy is to grow then it will grow through the starting up of companies, so it’s encouraging to see the number of companies in the city is growing.
“Some of this will be recession-led, because in a recession you get more people being made redundant and doing their own thing.
“But I think the rate of growth suggests it’s a bit more than that, and that Nottingham is a good place to start a business.”
Despite the fact that start-up figures have fallen below the national average for 2012, it is hugely encouraging that so many businesses are continuing to find success in a relatively small economy. The challenge for retailers, business leaders and of course the local council will now be to continue this momentum and to provide support for those wishing to make their business a success after the initial trading period.
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