There has been a 16% increase in levels of entrepreneurial activity in the West Midlands over the last five years, according to the world’s largest study on the subject.
 
The Global Entrepreneurship Monitor (GEM) analyses levels of entrepreneurial activity in 42 countries and has just published the latest West Midlands results.

Raising levels of entrepreneurial activity is one of the key challenges identified in the West Midlands Economic Strategy and is seen as key to closing the £10 billion output gap in the region.

Since 2002, there is a strong suggestion that entrepreneurial activity for both the population as a whole and for women in particular has increased from a position where the West Midlands was at or below average for the UK to one now where the West Midlands is statistically average or above for the UK.  The study also reveals that early stage entrepreneurial activity in the West Midlands has increased from 5.3% in 2006 to 6.3% in 2007.  At the same time rates for the whole of the UK fell from 5.8% in 2006 to 5.6% in 2007.  The progress in the West Midlands is across all areas, including rural and urban. 

The study also shows that early stage entrepreneurial activity amongst graduates and postgraduates in the West Midlands is much higher than the UK average.  For graduates the rate is 8% of this population compared to 6.8% in the UK as a whole.  Additionally there are more Master’s level entrepreneurs (19.4% regionally compared to 8.9% for the UK) and 11.4% for those with a PhD in the region compared with 7.2% for the whole of the UK.  

Last year North Staffordshire was crowned the Enterprise Capital of the UK after in a national competition which forms part of the Government's drive to increase entrepreneurship across the UK.  Since 2004 over 500 new start-up companies have been created, plus 1,000 new jobs and 21 sustainable social enterprises thanks to projects run by the North Staffordshire Regeneration Zone.  Over 7,500 young people have also been given the opportunity to run a real business.

In an Enterprise Nation study, commissioned by BT last year, the West Midlands was identified as the fatest growing UK region for homeworking, along with the North West.  In recognition of the contribution homeworkers make to the regional economy, the Advantage West Midlands-funded Rural Regeneration Zone has supported a project that has seen the UK’s first dedicated unit for home business owners in Shrewsbury, Shropshire – winner of the first regional enterprise award in 2005.  The ‘Enterprise HQ’ project has attracted hundreds of home business owners since it opened its doors in April 2007.

Raising entrepreneurial levels amongst women is one of the key focuses of Advantage West Midlands and the Regional Enterprise Board.  According to the GEM study, at 3.9%, the West Midlands is now above the UK average for female entrepreneurship.  Female entrepreneurship in the 35-44 age group is well above the UK average at 7% compared with 5.6%.

In 2006 Advantage West Midlands set up and part funded the Regional Women’s Enterprise Unit, a two year pilot project aimed at providing business advice and support to help women start up new businesses, or to grow and develop an existing business.  Over the last two years, 200 new women-owned businesses have been created.  In the future this type of support will be provided to businesses through Business Link.

Welcoming the GEM study findings, Nick Paul, Chairman at Advantage West Midlands said:  “I am delighted to hear that the efforts of the Advantage West Midlands Regional Enterprise Board under the leadership of Norman Price, and others, are beginning to pay dividends.   This rise in the levels of entrepreneurial activity does not occur without major activity across the region from businesses and their public sector support operations of all kinds, from Universities to local enterprise agencies, Business Link and many others.  This is a real Team West Midlands success story.”

“Businesses are the engine of economic growth and prosperity and it is vital that we build on the findings of this report to help nurture and grow even more companies and entrepreneurs.”

“But we must not be complacent – we face competition not only from other UK regions but also from European and global competitors.”