The number of small and medium-sized businesses in the South West is at its highest point since 2010. What’s driving the growth in the region?

We are proud of the fact that the number of SMEs in the South West has been rising steadily over the last decade and these are now very much viewed as an engine room for our £144 billon local economy. In fact, nearly half of the two million people employed across the South West, are now employed by an SME and over 90% of these, within an SME that currently employs between one and 49 people. Indeed we have now very much acknowledged that SMEs are crucial to the South West’s economy.

However, those of us who reside within the 9,200 square miles that make up the South West of England Region, know only too well, how difficult it would be to isolate a single reason for this high point in SME numbers. In many ways our SME population reflects a wider picture, but it is also very often the case that there are clear differences that very much reflect our large, diverse region. One thing seems clear though is that there is something about a functioning balance in our area, of opportunity, initiative and support, which when combined appropriately, supports local enterprise. 

Some of our local SMEs are inevitably engaged in the rural activities or tourism for example that often spring to mind when we think of the South West, particularly in the south (Cornwall, Devon and Dorset) and these make a very useful contribution to our economy.   However, we are also proud that our region has a strong Marine industry. The region of course has 700 miles of coastline, making it the largest coastline of all the English regions.  Less obvious though, is that we have a very successful Semiconductor Design sector or that the South West has the second largest aerospace cluster in Europe for example. All of which inevitable provide direct and indirect opportunities for SME business viability.

Civil engineering projects like the one at Hinkley Point in Somerset for example, have provided SMEs with a range of opportunities. In addition, we also have some a highly active economic areas, such as the M4 corridor (in and around Bristol) for example, which not only includes branches of major multinationals, but it is also a magnet for technology and knowledge based manufacturing and services and in turn provides superb opportunities for SMEs to contribute to this success. 

Opportunity and support combine well though activity supported by projects in initiated by our region’s eight Universities, with the majority of these being very active in supporting enterprise. Innovation campuses are also providing direct and indirect job opportunities. We also have some very good Growth Hubs, such as Swindon and Wiltshire in our north east or the Cornwall & Isles of Scilly Growth and Skills Hub in our south west, who also add value to the efforts of our smaller businesses. LEPS and Growth Deal funding help, as do various proactive Chambers of Commerce, such as Exeter Chamber of Commerce, or Bournemouth Chamber of Trade and Commerce for example. In fact the new BCP Council area, would be a very good example of a part of our region that is often seeing small and medium sized businesses growing at a rate that is often greater than anywhere else in the country.  This being driven by Creative and Digital and Financial Services in Bournemouth itself and Aerospace, Marine and Environmental Technologies in Poole and Christchurch, in addition to the areas of Dorset that surround the three towns. Another good example are Mendip District Council who are now partnering with the CIM in the region to support local businesses in the Mendip area of Somerset.

Innovation in our region remains a key focus and indeed continues to present a clear opportunity for SMEs. In fact although innovation is perhaps not seen as being as strong as some of our other abilities yet, we are also very pleased that the South West, currently has around 10% of the UK’s R&D employees based here.  Also we are mindful that Patent applications here are generally above the national average (when based on a per head of capita basis) too. Again helping our SMEs to establish and grow.

We are conscious though that softer factors also contribute too. The South West continues to be a superb place to work and live, and we enjoy a relatively low unemployment rate.  The South West is often cited as a positive choice for professionally qualified people, who seek relocate within the UK and these add to the success of our SMEs as well as turning out to be the founders themselves in many cases. Those of these who are developing a good strategy, actively engaging in networking, with the right people are thriving, although those who able to identify and manifest opportunity are also driving us forward too.

Enterprises in the South West inevitably appreciate our feeling of remoteness and tranquillity, but are clearly able to play a very important role in UK economy. Yes, it is a land of myths and legends, it is also an area with a proud historical heritage too, but with a strong local GDP, we are also a region of today and our SME population are clearly still able to make a valuable contribution to our country’s economy.