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Aberdeen tops UK poll of new business creation

Aberdeen was ranked first for business creation in 2009, producing 50 more businesses than it lost, according to new research from Campbell Dallas LLP.

Findings reveal that the UK swung from a net creation of eight businesses per 10,000 people in 2008 to a net loss of seven businesses per 10,000 population in 2009. The number of businesses closing outstripped that of new businesses being created, resulting in a net loss of 43,155 businesses in 2009 (latest data available). This compares to a net creation of 46,260 businesses in 2008.

Tom Faichnie, Partner at Campbell Dallas LLP, explains: “These figures reveal the true extent of recessionary damage caused to the UK economy.

“Smaller businesses in particular had a torrid time with banks reluctant to lend to businesses with few assets. Banks are still reluctant to reassess the level of risk associated with lending to start-ups, making it very difficult for new businesses to access funding.

“Those who were able to access finance were doing so despite some incredibly stringent conditions. In some cases company directors were required to provide personal guarantees, such as their homes and cars, as part of the loan agreement.

“With 99% of the British economy made up of SMEs, it is imperative that the Government ensures that small businesses receive the funding and support they require to avoid the economy falling back into recession.”

London, the UK’s number one City for new business creation in 2008, tumbled down the league table this year as a result of the slowdown in the financial sector. Campbell Dallas LLP reveals that London lost six businesses per 10,000 people in 2009, losing 4,525 more businesses than it created.

Tom Faichnie comments: “The capital’s ability to create new businesses was severely impacted during the recession. As well as the funding implications, the cost of starting a new business in London is considerably higher than in other parts of the country such as Aberdeen.”

Rank Towns and Cities Net new businesses 2008 Net new businesses per 10,000 pop

2008 Net new businesses 2009 Net new businesses per 10,000 pop

2009

1 Aberdeen 275 13.1 50 2.3

2 Oxford 215 14.7 15 1.0

3 Dundee 30 2.1 -10 -0.7

4 Edinburgh 345 7.3 -50 -1.0

5 Manchester 440 1.7 -395 -1.5

6 Middlesbrough 70 5.0 -25 -1.8

7 Telford 70 4.3 -40 -2.5

8 Norwich 60 4.4 -45 -3.2

9 Luton 220 11.5 -65 -3.3

10 Bradford 225 4.5 -175 -3.5

11 West Bromwich 165 5.7 -115 -4.0

12 York 175 9.0 -80 -4.0

13 Wolverhampton 100 4.2 -100 -4.2

14 Huddersfield 140 3.5 -175 -4.3

15 Glasgow 345 5.9 -265 -4.5

16 Sunderland -25 -0.9 -130 -4.6

17 Swindon 215 11.0 -100 -5.0

18 Ipswich 25 2.0 -65 -5.1

19 Northampton 135 6.5 -110 -5.2

20 Newcastle 240 8.6 -150 -5.3

21 Dudley 170 5.6 -165 -5.4

22 Plymouth 120 4.7 -140 -5.5

23 Milton Keynes 425 18.2 -130 -5.5

24 London 17,245 22.5 -4,525 -5.8

25 Peterborough 55 3.2 -100 -5.8

26 Belfast 425 15.8 -160 -6.0

Average Top 50 24,465 10.2 -14,570 -6.1

27 Nottingham 70 2.4 -185 -6.2

28 Swansea -90 -3.9 -150 -6.5

UK AVERAGE 46,260 7.5 -43,155 -7.0

29 Cardiff 140 4.2 -240 -7.1

30 Bristol 395 9.3 -310 -7.2

31 Leeds 295 3.8 -585 -7.4

32 Hull 70 2.7 -125 -7.5

33 Coventry 205 6.6 -250 -8.0

34 Liverpool 335 7.6 -355 -8.0

35 Derby 50 2.1 -205 -8.4

36 Birmingham 200 2.0 -910 -8.8

37 Portsmouth 100 5.0 -185 -9.1

38 Reading 120 8.0 -140 -9.2

39 Sheffield -115 -2.1 -510 -9.3

40 Leicester 185 6.1 -285 -9.4

41 Stoke-on-Trent 15 0.6 -235 -9.8

42 Stockport 220 7.8 -315 -11.1

43 Walsall 0 0.0 -285 -11.1

44 Southampton 55 2.3 -265 -11.2

45 Bournemouth 80 4.9 -260 -15.8

46 Bolton 90 3.4 -435 -16.4

47 Blackpool 60 4.3 -230 -16.4

48 Preston 20 1.5 -230 -17.1

49 Southend-on-Sea -30 -1.8 -295 -18.0

50 Poole 90 6.4 -335 -23.7

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