Rural areas in the Midlands are top hot spots for entrepreneurs in 2006 says Barclays

Predominantly rural areas in the Midlands, such as the Derbyshire Dales, have outpaced other areas around the country to see greater growth in start-ups in 2006 compared to 2005.

The data is one of the findings in the latest starts report from Barclays Local Business.

The national average for growth in start-ups was 12 per cent but many areas saw increases of more than 50 per cent and some 100 per cent plus.

Oswestry saw the number of new businesses set up increase from 200 to 500, and that's for a town that has a working population of just over 23,000.

The Malvern Hills in Worcestershire increased from 300 to 600 and the Derbyshire Dales from 400 to 700.

Outside the Midlands, Weymouth and Portland on the Dorset Coast increased from 200 to 400.

John Davis, marketing director for Barclays Local Business said: "Overall start-ups grew by 12 per cent in 2006 over 2005, so to see growth rates of 100 per cent and more in some areas is remarkable".

"The top areas also happen to be in rural communities".

"Amongst the fastest growing start up locations more than half are mainly rural or are towns that serve a rural economy".

"It seems unlikely that this is a pure accident and more probable that there is real business growth outside the more urban areas".

""There could be a number of reasons, including locals opening up standard businesses to serve their communities such as shops, garages and builders, but equally it is likely that many of these areas are attracting down shifters from urban areas.

For instance the top four are all in areas of outstanding natural beauty which are not only attracting locally grown businesses, but people moving to the area who might be using teleworking to run a consultancy, or have decided to run a tourism business such as bed and breakfast".

""What is certainly true is that if a place is desirable to live in, business will follow." Areas In England And Wales Which Saw Growth of Start Ups Increase By More than 50 Per Cent 2005 v 2006 comparison: Oswestry (Shropshire) increased from 200 to 500 Weymouth and Portland (Dorset) from 200 to 400 Malvern Hills (Worcestershire) from 300 to 600 Derbyshire Dales from 400 to 700 St.

Helens (Merseyside) from 800 to 1300 Daventry (Northamptonshire) from 400 to 600 North West Leicestershire from 600 to 1000 Islington from 2200 to 3500 Thurrock (Essex) from 900 to 1400 Ellesmere Port and Neston (Cheshire) from 300 to 500 North Devon from 700 to 1100 Overall figures show that the number of start-ups during 2006 increased by 12 per cent compared to 2005.

The 435,300 new firms started last year meant that the market moved back close to its peaks of 2003-2004 (454,000) after a subdued 2005.

Regionally, there was faster growth in the percentage of people starting up businesses in the North and Midlands compared to the South.

Start-up activity picked up strongly in the North West (24 per cent increase), West Midlands (19 per cent), Yorkshire (16 per cent) and North East (14 per cent), whereas London and the South East increased by 11 per cent and 10 per cent respectively.

Other key highlights from the 2006 Barclays start up research: The number of businesses where females started up increased by 12 per cent to 139,700 compared to 379,200 businesses with male involvement.

The number of new firms increased across all age ranges with growth in start up volumes strongest in the 25 to 34 age group.

This age group increased by 15 per cent to 126,100 businesses and 29 per cent of all new firms are set up by them.

The number of businesses started across all twelve industry sectors increased during 2006 with growth strongest in retail and property services both up 21 per cent year on year.

Irrespective of these growth rates the most popular sector for start-ups was in Business and Financial Services with 121,100 new businesses set up, followed by Construction at 59,200.

Barclays, which aims to champion small companies by providing extensive localised knowledge and award winning services is helping people to set up in business by holding free seminars.

People with business ideas can find out how to set up in business by attending Barclays free start up events across the country - Lets Talk Business Ideas and Lets Talk Starting in Business.

The Ideas events are for people thinking about exploring new business ideas and to see if self employment is for them.

The Starting in Business events are for people who already have a business idea and are ready to start.

The programme covers how to write a good business plan, sourcing finance, managing cash flow, legal requirements, taxation and VAT and marketing.

In 2006, over 5500 people attended these events - to find out more visit www.barclays.co.uk/seminars.

Back to top