KDB picks out SME and entrepreneur hotspots

Analysis by KDB of shareholder-directors across the country has revealed where marketers targeting small and medium enterprises (SMEs) and wealthy individuals could focus their efforts.

The report reveals that the Midlands, Anglia, the north nest and south central are the regions with the highest concentrations of SMEs and entrepreneurs at a time when many companies are looking where economic recovery might develop over the next few years.

The report indicates that Birmingham will be the heart of entrepreneur and SME activity over the next few years.

However, London and its environs also continue to place highly in the entrepreneurial hotspot table, with six of the top 10 rankings.

The KDB report examines the most recent records on 2.5m British companies.

It identifies areas of the UK where shareholder-directors are most numerous and concentrated.

These business leaders represent the country's entrepreneurial community and will be the most significant contributors to the UK's return to economic health following the recent financial markets crisis.

Other entrepreneurial hotspots outside of the capital and its environs revealed in the KDB study include: Brighton; Bristol; Nottingham; Leicester; Sheffield; Warrington; Manchester; Peterborough; Bournemouth and Coventry.

The regional aggregated picture is even more revealing, showing that regions away from the capital are most likely to provide the engine room of economic recovery.

The four regions registering significantly above the national average score of 100 are, in order: the Midlands; Anglia; the north west and south central.

In Scotland, although below the national average as a whole, there are key entrepreneurial hotspots, including Glasgow, Aberdeen and Edinburgh.

Similarly, Welsh hotspots are found in Cardiff and Swansea.

Matt Boot, chief analyst at KDB, said: 'Recovery from the current economic slowdown will require wealth creation and strong leadership from companies large and small.

'Large firms, which employ ranks of clever economists to factor in cyclical changes such as those we are experiencing now, have no doubt predicted the current tough times, even if they might not have foreseen its severity.

'However, large companies with more than 500 employees only represent 41 per cent of the country's turnover.

'The rest is delivered by smaller businesses.

'In fact, firms with fewer than 100 employees represent 43 per cent of the nation's turnover - two percentage points higher than large companies.

'Therefore, economists looking beyond the current troubled times towards a period of recovery will be very interested in where the most dynamic, wealth-creating firms are likely to be located in the country.

'On a tactical basis, marketers will also be interested in this picture, in that it helps to identify the most vibrant local economies, and therefore the most fertile markets for sustaining current revenues.

'For government, economists, and indeed banks, the findings of this study are significant, when it comes to directing initiatives designed to stimulate health and recovery in the 'real economy' following the recent financial markets crisis.

'A high concentration of shareholder-directors is also indicative of the health, robustness and resilience of local economies.

'The findings are also of interest to marketers targeting high net worth individuals around the country, whether for investment products, property, motor vehicles, high-value retail products, or luxury holidays.

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