Swansea is a UK hotspot for new businesses outperforming both Cardiff and London

Swansea has been identified as a UK hotspot for start-up businesses.

Research from company information provider, DueDil, shows that the number of start-up businesses in Swansea in the first quarter (Q1) of this year, compared to same period in 2016, rose by 18.29% – with 401 start-ups compared to 339.

In Swansea, where in recent years there has been a greater focus on university spin-out firms – at both Swansea University and the University of Wales Trinity David – as well as an increase in dedicated space for start-up business, including provision from Swansea TechHub, 1,383 new businesses were created in 2016.

Based on the Q1 performance, DueDil is forecasting it to be 1,636 for 2017.

Swansea’s growth rate in Q1 was only just behind:

  • Oxford at 18.32%
  • Liverpool 21.71%
  • Norwich 22.12%
  • Leicester 34.45%

And top for any city or town in the UK, Salford with 85.49%.

Swansea’s near 20% growth rate was far higher than London and Cardiff.

But while London is well down the list, its year-on-year percentage growth rate in starts-up at 5.12% – due to the huge population of the English capital, still saw 57,235 new businesses being set up in Q1.

The analysis was based on cities and towns (47 in total) with the biggest populations in the UK. That provided a final list of the top 35 performing locations.

Cardiff was ranked one position ahead of London with a year-on-year Q1 growth rate of 5.19% – with new companies up from 732 to 770. For the year the number of start-ups in Cardiff is forecast to be 2,931, compared to 2,786 in 2016.

Despite comparatively slower growth, London, Birmingham, Manchester, Glasgow, and Leeds were the top producers of start-ups by actual number.

Overall 173,100 new companies started up in the UK between January and March 2017, representing an overall decrease from the same period in 2016.

Justin Fitzpatrick, chief operating officer and co-founder of DueDil, said “Interestingly, just a handful of the UK’s major cities made the overall top 20 for start-up growth, with cities such as London, Birmingham, Glasgow and Leeds all absent from the top rankings, suggesting that they are slowly losing their grip on their status as the UK’s startup growth.”

He added, “The overall decrease in startup growth across the UK, is perhaps demonstrating a cautious attitude towards enterprise with Brexit looming. Banks and alternative finance providers have an opportunity to play a role in growth through investment.”

WalesOnline