A new report has revealed the UK has seen an uptick in new bookshops, clothing retailers, and takeaways, particularly across London, Birmingham and Manchester.
Making their mark on the UK economy, the number of businesses specialising in retail, food, and entertainment services has grown the most since 2017.
Tyl by NatWest, the payments partner supporting UK SMEs and micro businesses, commissioned the Evolving Enterprise Index, showing the fastest growing and fastest emerging industries across the UK’s largest cities[1].
In partnership with Data City, Tyl by NatWest analysed data from Companies House, showing the number of businesses newly opened in some of the most economically significant industries between 2017 and 2022.
Representative of Britain’s diverse business landscape, the research showcases entrepreneurial development from the top 14 urban hubs across the UK, confirming that Britain remains a thriving environment for fledgling small and medium sized enterprises.
The Evolving Enterprise Index paints a picture of growth for Portsmouth’s sports clubs, Edinburgh’s Garden centres, and Belfast’s fitness outlets, showing that Britain’s heritage of innovative entrepreneurship still has a bright future ahead.
Region – Fastest growing enterprises (% growth rate 2017-2022)
London: Bookshops (217%)
Birmingham: Clothing & Textiles Stalls (638%)
Manchester: Takeaways (506%)
Leicester: Butchers (265%)
Glasgow: Clothing, Textiles, Footwear Stalls and Markets (662%)
Cardiff: Photography (419%)
Sheffield: Takeaways (488%)
Edinburgh: Garden centres (287%)
Portsmouth: Sports clubs (114%)
Leeds: Physical Wellbeing Activities (265%)
Newcastle: Medical practices (122%)
Belfast: Fitness Facilities (239%)
Southampton: Child day care (138%)
Bristol: Camping facilities (53%)
Additionally, Tyl’s research identifies which sectors have gained completely newfound momentum between 2017 and 2022, revealing the most established areas in which these exciting new business hubs have come to light. Cardiff leads with new clothing retailers, as Leeds and Portsmouth demonstrate growth in artisanal and horticultural crafts, such as bakeries and garden centres.
Region – Fastest emerging enterprise (No. of newly opened businesses 2017-2022)
Leeds: Bakeries (88)
Cardiff: Clothing, Textiles, Footwear Stalls and Markets (87)
Birmingham: Food and drink stalls (87)
Glasgow: Photography (83)
Edinburgh: Child day care (72)
Southampton: Travel Agencies (48)
Bristol: Bookshops (40)
Leicester: Opticians (36)
Newcastle: Opticians (36)
Portsmouth: Garden centres (31)
Belfast: Garden centres (31)
Sheffield: Dry cleaning (21)
Mike Elliff, CEO of Tyl by NatWest comments: “This research is a testament to the very best of British business. Entrepreneurs have had to weather an unprecedented global pandemic, a shifting political landscape and a rapidly transforming hybrid world. Our Evolving Enterprise Index shows that the UK is a thriving hub for new entrepreneurs who have cemented themselves as the epitome of resilience given the challenges of recent years. Whether SMEs are looking to start, scale or grow their business, we are proud of the role Tyl can play in helping them do so. Our index offers valuable insights for SMEs to better understand the unique business blend of their local communities, and which markets they can take advantage of.”
Last year, research from Tyl by NatWest revealed that bakeries are the most sought-after shop on a ‘perfect high street’, with butchers also ranking in the top ten. The Evolving Enterprise Index crowned Leicester as the fastest growing market for butchery, with an increase of 265% between 2017 and 2022, followed by London with 226%, reporting a staggering 1,256 new meat vendors appearing in the capital.
Alternatively, Glasgow leads in the dining-out market with an increase of 169% as the strongest hub for new in-person restaurants, while Manchester has seen the largest surge in takeaways, with a 506% increase.
Elsewhere, Britain’s coastal cities have proven that sports facilities are central to strong communities, with Portsmouth reporting a 114% increase in new sports clubs. Southampton follows suit with an 89% increase, with new sports shops as the fastest emerging market for the city.
The UK garden centre scene is also blossoming in inner city environments. Britain’s capital cities are seeing the biggest boom in gardening facilities, with an impressive 322% increase in new garden centres in Cardiff, closely followed by 298% in London and 287% in Edinburgh.
According to small business expert, Teresa Heath-Wareing:
“The key to a thriving SME economy is in a wide variety of sectors that will appeal to a diverse range of consumers. It’s reassuring to see the positive outlook for small businesses who take the time to understand their local landscape and business climate.”
She adds, “Small businesses are fighting an uphill price battle against larger organisations. To succeed in such a competitive environment SMEs must embrace the ways they add value to their customers that go beyond the bottom line.”
[1] By metropolitan population
