The Midlands is still the most vibrant region of the UK for early-stage businesses. That’s the view of Clarity, a brand-new data asset launched by business advisors Quantuma.
Within its report, analysing the distress of small and medium-sized enterprises (SMEs) ranked by the age of each firm, it showed the number of Midlands-based SMEs in distress in the 0-3 years age bracket was much lower than the rest of the UK.
Start-up firms trading for between 0-3 years in the Midlands amounted to just 2% of all distressed firms in the region, compared with the national average of 8%. However, 43% of Midlands-based firms aged 3-7 years found themselves in some form of distress, which is higher than the national average of 38%.
The manufacturing industry is the primary sector for the Midlands, which is performing above the national average for the trade. Midlands-based manufacturing firms also rank 17% higher than their counterparts based in the capital based on fiscal stability and long-term growth prospects.
Aside from what Clarity deems a “thriving” manufacturing industry, the Midlands has also seen strong growth among fledgling firms in the financial service and construction sectors.
It’s worth noting the local disparities in the jobs market across the Midlands. Just 5,000 jobs are said to be at risk in the East Midlands compared with 9,000 in the West Midlands. Almost a fifth (17%) of those 9,000 jobs are with companies labelled “severely distressed” in Clarity’s report, compared with just 6% in the same category for East Midlands roles.
Richard Easterby, head of Birmingham, Quantuma, said: “The Midlands boasts one of the UK’s most exciting places for entrepreneurs to set up their businesses.
“However, it is important to capitalise on the opportunities to spread growth and investment across the whole of the region, especially when it comes to supporting maturing businesses.
“Clarity gives us the opportunity to work with businesses and other professional advisers across the region to plan by identifying the key sectors and individual businesses that need the most attention.
“Looking at job stability in the region, it is evident that policy makers need to address this uncertainty, while also developing new paths to distributing growth opportunities across the Midlands as a whole.”
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If you’re looking for high-value, low-cost business space to get your business off the ground in the Midlands, we’ve got just the thing for you. At Pall Mall Estates, a significant percentage of our commercial property portfolio is based in the West Midlands and the East Midlands.
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Take some time to browse our vacant units. If you’d like any further detail, or you wish to arrange a viewing in person, please don’t hesitate to contact our friendly and experienced property team today on 020 8986 6616. Alternatively, you can fill your specific requirements via our online enquiry form and we’ll do our best to match a property to your needs.