FIVE businesses were created every day in Middlesbrough in the first half of 2022, according to new research.
Analysis of the latest data reveals that 878 businesses were registered in Middlesbrough between January and June 2022, an increase of 43% from 2021, and an increase of 94% from the same period in 2019.
Small business lender iwoca’s HotSpots report shows that Middlesbrough saw the highest rate of new business creation per capita out of all local authorities in the North East in the first half of this year with 610 businesses being created per 100,000 people.
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Newcastle saw the second highest business growth in the North East, with 517 per 100,000, followed by Stockton and Gateshead.
Middlesbrough Mayor Andy Preston said: “Great things are happening in Middlesbrough - our awesome town is a proud, energetic and enterprising place.
“Times are undoubtedly tough and we will fix that by working together, showing compassion and being resourceful.
“Our future shows an incredible boom in jobs, ambition and optimism. UTB!”
But across the UK, the region experienced the second lowest rate of new business creation per capita, with 345 per 100,000, up 19% from 2021.
London saw the highest rate of business creation in the first half of this year with 1,587 businesses being created per 100,000 people. This was followed by the West Midlands (571) and North West (554). Scotland appeared bottom of the list with a rate of 338 new businesses per capita.
The rise in new businesses sits alongside an increase in the number of workers seen moving jobs this year. Total job-to-job moves within the UK increased to a record high of 997,000 during the first quarter. The ONS states that this rise has been driven by resignations - suggesting that some workers are deciding to quit their jobs and set up new businesses.
Seema Desai, iwoca’s Chief Operating Officer said: “Despite the prevailing headwinds of an impending recession, we are encouraged to see that so many businesses have been created during the first half of this year.
“As many of these businesses struggle with cash flow in the coming months due to skyrocketing business costs, it is vital that lenders step in to provide a helping hand.”
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