- Tyl by NatWest study identifies bookshops, clothing stalls and markets, and takeaways as some of the fastest growing businesses in the UK between 2017 and 2022.
- The number of businesses specialising in fresh produce, retail and entertainment has grown the most over the same period.
- Additionally, businesses specialising in food and drink, gardening and sports witness new interest across UK communities.
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*.
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.
Table One: Fastest growing enterprises per region
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 spotlights 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.
Table Two: Fastest emerging enterprises per region
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.
Encouragingly, the UK garden centre scene is 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.”
Tyl’s top tips for SMEs to improve their products and services:
1) Get to know your customers better
Tailor your product and service offerings to fit the wants and needs of your customers using data. AI tools such as chatbots and predictive analytics can help you make informed business decisions to help grow your customer base. Investing in business analytics is a useful way for SMEs to have an accurate handle on sales, payments, and inventory, often keeping track of everything in one place and at the same time. Features like the Tyl Portal help by providing visibility over transactions, invoices, and settlement history, and can help you find out when the busiest times are in your business. These insights are vital when it comes to refining your business model and gaining an understanding of issues such as staff numbers and what products are flying off the shelves, ultimately helping you maximise your profits.
2) Embed your business’ purpose in the community
With the role of business increasingly recognised in the fight against the climate crisis and social mobility, showing that you at least consider these factors in your business model is rapidly becoming a minimum expectation for many consumers and investors. However, the real growth and strengthening of customer relationships comes when you go that one step further, showing how your business’ commitment in these areas specifically improves life for the local community.
3) Diversify your payment methods
Bricks and mortar shops are an important brand building piece for retailers, but consumers want flexibility and choice in how and when they pay. With more ways of taking payments than ever before, like Tap to Pay and Buy Now Pay Later, it’s never been easier to give your customers a payment method that suits their spending habits and gives them more transparency over their finances. Adopt new ways to pay like payment links and QR codes to give your customers the most convenient shopping experience.
Download the full Evolving Enterprise Index report here.
* By metropolitan population
