Business News Round Up (20/08/2024)
Financial services remains key to Scottish economy
The financial services sector in Scotland has evolved in recent decades, with a loosening of some traditions and fewer people employed, but official data shows it continues to be a major driver of GDP growth in the economy. Figures contained within the Scottish government’s sectoral skills assessment report for financial services shows 7.2% of Scotland’s total economic output in 2023 came from financial services. The sector also proved more economically volatile than the wider economy, in 2022, the GDP contribution of financial services declined by 2.1%, during a period where the wider Scottish economy grew by 4.3%. 2022 was an acutely volatile year in financial markets and for financial services firms, with markets generally trending downwards as investors feared the consequences of higher interest rates on asset prices.
2024 is launchpad for growth as 468,000 new companies start up
In a sign of the strong potential of the UK economy, 468,000 new firms have started up in the first half of 2024, according to the New Startup Index, published by Beauhurst and supported by Royal Bank of Scotland. This brings the number of companies operating in the UK to 5.47m, with new businesses primarily operating in wholesale, retail and professional services as of June 2024. The UK has experienced a significant uplift in new businesses in recent years, with numbers growing from 173,000 in the first quarter of 2020 to 248,000 in the first quarter of 2024 – marking a 43.4% increase. Across the UK regions, London led the way in the first half of 2024 with 161,000 new business incorporations, the highest across all regions. Scotland saw 21,700 new registrations, a 3.69% increase. Across the UK, only Wales and the South West saw a decline.
Manchester Central brings £45m to Greater Manchester economy in Q2 2024
Manchester Central has boosted the local economy by over £45 million in the past quarter, new Q2 figures have revealed. The latest figures, which looked at events throughout April, May and June, revealed the enormous financial impact the venue had on the region during the quarter, in which it hosted 34 events and welcomed nearly 121,000 delegates. The figure looks at the spend by delegates and business tourists attending events held at Manchester Central in the venue itself and across surrounding hotels, bars and restaurants. The quarter was the first with new CEO, Lori Hoinkes, at the helm, and the new boss recently announced a drive to focus on international markets for the year ahead. Hoinkes, who originates from Canada and joined Manchester Central in May, said the international side of the business is now ripe for reinvigorating.
Oldham has seen the highest northern SME growth post-Covid
Oldham has experienced the greatest SME growth in the North of England post-pandemic. A 13.5% increase in small business activity marks the most significant expansion in the region. New research from Iwoca, indicates that Oldham now has a total of 7,415 SMEs, surpassing pre-pandemic levels. The data, compiled from ONS business and employment figures, demonstrates that Oldham has the fastest SME growth across the North West, North East, and Yorkshire between 2019 and 2023. This growth equates to more than 850 additional businesses. Employment rates in Oldham have also improved, with the latest figures showing an 8.2% rise between 2019 and 2022. With 89,350 people currently employed, this marks a growth of nearly 7,000 jobs compared to 2019. The transport and storage sector led the way with a growth of 195 more SMEs between 2019 and 2023, in part due to the surge in online deliveries during Covid-19 lockdowns.
https://www.theoldhamtimes.co.uk/news/24526930.oldham-seen-highest-northern-sme-growth-post-covid/