A £4.7 billion boost to Derby’s economy is set to come from the growing number of small and medium-sized businesses in the city, according to research for Npower Business by Capital Economics which sees the city as a Top-15 rated city for SME growth.
Derby has seen significant growth over the last six years with the number of SMEs increasing by 19% with the creation of 5,600 jobs and £4.1 billion to the city’s economy. The next four years will see an additional 5,000 created and an additional £4.7 billion a year by 2020, according to the research.
The city is attractive to SMEs due to a low cost of living, good broadband connectivity, Enterprise Zone and low business rates all of which has already seen Derby voted the best place to open a business in the UK in research done by Quality Formations earlier this year.
Derby is recognised as a hub for some of the fastest-growing SME sectors including architecture, engineering, health, education and machinery repair. Growth is supported by the Local Enterprise Partnership for the area, D2N2, which provides specialist advice on training, growth and funding.
Philip Scholes, head of Npower Business, said, “SMEs have been the backbone of the UK economy, and as this research shows, there is significant opportunity for them to grow further in the coming years ahead.”