- Stoke-on-Trent South now has the second highest concentration of entrepreneurs in the UK
- St Albans also debuts in the top 10
- While London is still home to eight of the top 10 areas for microbusiness density, all of the top 20 fastest-growing constituencies are outside the capital
- Wentworth and Dearne is growing at the quickest rate of all UK communities
- Data comes from GoDaddy’s multi-year research initiative, Venture Forward, which analyses data from more than half a million digital microbusinesses in the UK
London’s dominance as the UK’s microbusiness hub is being challenged by rising entrepreneurial activity outside the capital, new data reveals. Stoke-on-Trent South has surged to become the second-highest area for microbusiness density in the UK, while St Albans has made its debut in the top 10.
This information comes from Venture Forward, a comprehensive research initiative by GoDaddy. The study analyses data from over half a million digital microbusinesses across the UK, typically defined as enterprises with 10 or fewer employees. Each area receives a microbusiness density score, reflecting the number of small firms per 100 residents.
Challengers Emerge
Stoke-on-Trent South, after two years of steady growth, now boasts 14.02 microbusinesses per 100 residents, placing it second nationally. The Cities of London and Westminster constituency remains at the top with a density score of 22.48.
St Albans has also entered the ranks, securing third place with a score of 9.28. This marks a significant milestone as it is the first time a constituency outside London has broken into the top 10. Other burgeoning business centres include Bristol West (3.80), Hove (3.60), and Manchester Central (3.50), all featuring in the top 20.
London’s Dominance Waning
Despite London still hosting eight of the top 10 areas for microbusiness density, a broader trend of entrepreneurial growth is evident across the UK. All of the 20 fastest-growing constituencies for microbusiness density are located outside the capital.
Leading this surge is Wentworth and Dearne, which experienced a remarkable 500% growth year-on-year, reaching a score of 1.88 microbusinesses per 100 residents. Other notable areas include Rayleigh and Wickford (+311%), Arfon (+253%), Brecon and Radnorshire (+225%), and Loughborough (+207%), all showcasing significant entrepreneurial development.
Andrew Gradon, head of GoDaddy UK & Ireland, commented on these findings:
“While London has long been considered the centre of business and commerce, our Venture Forward data consistently shows rapid growth in microbusinesses across the UK. Stoke-on-Trent South’s rise to the second-highest ranking for microbusiness density, alongside the ascent of Manchester and Bristol constituencies, highlights this shift.
Microbusinesses play a crucial role in boosting local economies by increasing average wages and employment. It’s encouraging to see such growth and development across various regions.”
Impact on Local Economies
The growth of microbusinesses outside London underscores a significant shift in the UK’s entrepreneurial landscape. These small enterprises are not only diversifying local economies but also fostering economic resilience and innovation in regions previously overshadowed by the capital.
The implications of this trend are profound. By enhancing local economic outcomes, microbusinesses contribute to higher average wage growth and increased employment opportunities, thereby revitalising communities and reducing economic disparities.
As regions like Stoke-on-Trent South and St Albans continue to climb the ranks, the UK’s entrepreneurial ecosystem is becoming more inclusive and geographically diverse. This decentralisation of business activity promises a more balanced and sustainable economic future for the nation.
Conclusion
The latest data from GoDaddy’s Venture Forward initiative highlights a transformative period in the UK’s microbusiness landscape. With regions outside London experiencing unprecedented growth, the entrepreneurial spirit is thriving across the country. This trend not only challenges London’s long-held status as the business epicentre but also signals a more equitable distribution of economic opportunities nationwide.
For more information, visit GoDaddy.