Pockets of vibrant young start-up businesses outside of London and the South East are flourishing, according to a new report published by Barclays. Challenging the popular belief that the hub of business life and the UK economy is focused on the capital, this research carried out by the Economist Intelligence Unit has highlighted enterprising trends up north.
In particular, the area between Liverpool and York, labelled as the northern corridor, accounts for an increasing share of British start-up companies.
One of the aspects concentrated on was the volume of innovative social media conversations taking place, and it was found that northern cities such as Manchester, Sheffield, Liverpool and Edinburgh had the highest volumes after London.
Encouraging entrepreneurism across the UK
How does entrepreneurialism come about? The research from this report points to the belief that entrepreneurs are made, not born. It concludes that labelling innovation hotspots creates a buzz that fosters confidence and in turn leads to opportunity.
However, despite increased investment and policy changes designed to encourage entrepreneurism, the report also identifies areas for improvement. This includes encouraging entrepreneurial hubs outside of traditional city boundaries, promoting more collaboration between education systems and businesses and meeting the funding needs of entrepreneurs.
Antony Jenkins, CEO at Barclays believes entrepreneurs across the UK will thrive if give the right conditions.
He said: “This research shows that businesses, the education sector and Government can all do more to create thriving entrepreneurial ecosystems across the UK.
“The northern corridor is an example of a successful hub establishing itself outside London and the South East. It shows is can be done. The challenge now is for all interested parties to do more to create those conditions elsewhere.
“A thriving entrepreneurial industry in the UK will create jobs and growth and have a knock-on effect to the wider UK economy. It has to be a good thing.”