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Rotherham is a new business hot-spot according to a national survey

posted 11 Oct 2010, 03:39 by RiDO Rotherham   [ updated 11 Oct 2010, 03:45 ]
Recent research by the Royal Mail research has confirmed that Rotherham is booming when it comes to fledgling businesses with the borough having the second highest number of start-up businesses in the country.

The report shows that a total of 1.86 per cent of businesses in Rotherham are new start-ups, just behind Sunderland which topped the list at 1.89 per cent. 

The survey, which is compiled every six months by using Royal Mail's Business Changes File, highlights that Rotherham has seen more businesses start-up than in the same period last year (1.36 per cent) and more than the pre-recession figure of 1.51 per cent in September, 2008.

The Royal Mail study further shows that the overall number of new businesses start-ups in the UK has risen for the first time in 18 months with more than 39,000 companies being launched in the last sixth months - a rise of 13 per cent over the previous half year. 

Tim O'Connell, Business and Retail Investment Manager for Rotherham Investment and Development Office (RiDO), said the figures proved that Rotherham was on the right track in attracting and nurturing people who have the ambition and drive to start up on their own. 

He said: "We are delighted that the Royal Mail’s figures on the number of new businesses starts in Rotherham reflect our own findings and indicate that our hard work is bearing fruit. We know there are plenty of people out there with great business ideas and we like to think that with our help and experience we can help them set up in business, and more importantly, grow their business."

Mr. O'Connell added that RiDO has played a big role in attracting new businesses. "Fourteen months ago we established a small team of Businesses Coaches, working in our local communities to help people turn good ideas into the reality of a successful business. So far we have helped 119 people realise their dreams and these businesses now employ 141 people."

Rotherham is also fortunate in having some of the best accommodation for start-ups in the country. Business survival rates in RiDO's four highly-successful business centres Fusion @ Magna, Matrix @ Dinnington, Moorgate Crofts and Century Business Centre are well above average. The one year survival rate is 97 per cent and the three year survival rate is 84.5 per, compared to the national average of around 60 per cent.

Coun. Gerald Smith, Cabinet Member for Regeneration and Environment for Rotherham Borough Council, welcomed the findings, described the latest figures as "excellent news" for both the businesses themselves and the Borough as a whole.

He added: "This latest figure is the best in recent times and is both a big improvement on the same period last year but also above the pre-recession figures of September, 2008. This steady climb in the launch of new businesses is a sign of both the Borough's entrepreneurial spirit and the quality of the support available to local businesses by the authority. RiDO offers invaluable help and the right sort of premises ensuring that the formation and survival rate of new businesses is well above the national average."