Birmingham, Ladywood is the UK’s most entrepreneurial constituency in the UK outside London, according to new report.
The seat currently occupied by Shabana Mahmood MP ranked first in the index of all 650 parliamentary constituencies for the number of new companies incorporating when population size was factored in.
8,755 companies were launched in Birmingham, Ladywood in 2018. That works out at 134 companies per 1,000 people, placing it ahead of major cities including Manchester, Glasgow and Leeds.
Warrington South came in second place with 64 companies per 1,000 people starting up, followed by Glasgow Central in Scotland where 55 companies per 1,000 people were launched.
Bromsgrove followed with 49 companies launched per 1,000 people followed by Manchester where young entrepreneurs are being lured by lower property prices and better quality of life outside London.
From the top twenty constituencies outside of London, 12 were led by Labour MPs, 4 by Conservatives, 3 by the SNP and 1 each by the Green Party and an independent.
Rooted at the foot of the table was Conservative constituency Dumfries & Galloway with just 3.33 companies being registered at Companies House per 1,000 of the population and DUP constituency North Antrim with only 3.74 companies being registered there per 1,000 people.
663,664 new limited companies were registered at Companies House in 2018. The average number of companies per 1,000 of the population was 9.34.
Mark Halstead, managing director of Red Flag Alert said:
“The number of start-ups in the UK continues to rise and the number of politicians seeking to claim the credit matches.
“London is by far and away the first choice for those registering new companies because of the international investment into the capital, the volume of companies set up to handle corporate transactions in the city and the desire for many firms to brand themselves as a London-based firm.
“Birmingham Ladywood benefits from having access to world class professional services on its doorstep, excellent transport links and geographically it sits centrally in the UK. Major investment and initiatives to encourage new businesses to start in the area is paying dividends.
“Warrington South benefits from being strategically placed between two large cities in Manchester and Liverpool. Warrington itself has seen major business growth in recent years, particularly in the science and tech sectors.
“The Sci-Tech Daresbury campus in particular has been crucial to the growth of these sectors in the region and is now home to more than 100 high-growth companies and recognised as one of the fastest growing science parks in Europe.
“Success factors for those entrepreneurial constituencies at the top of the list include not just the political makeup but the quality of business support services. This could be services that are publicly funded organisations or private sector support services businesses in the area.
“Lifestyle is also a key factor which influences the choice of location for entrepreneurs. We found that younger entrepreneurs in particular are less enticed by big cities and more by amenities, culture and quality of life.
“Bournemouth West and Brighton Pavilion are really good examples of this where entrepreneurs who might have preciously located their business in London are being attracted by coastal towns which are perceived not only as sunnier and more relaxed but more supportive of digital and start-up culture enabling to do business with companies all over the globe.”
Download the full report which ranks all 650 constituencies here.