Volume of new Shropshire businesses falling behind rest of UK

Shropshire is now home to 20,305 businesses after a 2.16 per cent increase over the last year, Office for National Statistics data has revealed.

But that rate of growth is being outstripped by other parts of the country, with the national rate of business growth reaching 4.3 per cent. The wider West Midlands enjoyed even stronger growth over the period, with a 4.6 per cent boost to the total tally meaning there are now 201,000 businesses in the region.

Ludlow: 5,200 - increase of 90

North Shropshire: 5,080 - increase of 95

Shrewsbury & Atcham: 4,595 - increase of 65

Telford: 2,535 - increase of 90

The Wrekin: 2,895 - increase of 90

Shropshire: 20,305 - increase of 430

Montgomeryshire: 4,195 - decrease of 30

Over the border in Montgomeryshire, the number of businesses actually fell to 4,195 in the period.

The figures are based on the number of companies paying VAT or PAYE income tax in the period to the end of March.

Shropshire Chamber of Commerce chief executive Richard Sheehan said: "Starting a business is a leap of faith, and it's vitally important that people that take that leap feel there's a level of support around them to help them be sustainable.

"There is still a fairly significant failure rate, and it's really important that more resources are put behind those people and their businesses in order to make them sustainable.

"At the moment there probably isn't enough, and we need to bring everybody together to make sure the quality of professional support is there."

Mr Sheehan said areas such as appropriate accommodation and simplification of legislation covering small businesses would help them to remain competitive through their difficult early period.

He added: "People often start a business based on something they are already interested in, either through a hobby or a general interest, and that's not always the best motivation.

"Clearly there are growth areas, and food and drink in particular seems to accommodate a number of start-ups. Food and drink companies are regularly consulting our international trade advisers to engage with overseas markets, and if they do that and succeed they will become more sustainable."

The ONS said the high figures nationally reflected strength in the UK economy during the period, which coupled with low inflation to present a favourable environment in which businesses could launch.

It added that growth in the private sector was picking up the slack for jobs which had been cut from the public sector.

The swathe of figures also reveal that Shropshire remains a county which is dominated by small traders.

The oft-quoted figure that 90 per cent of businesses in Shropshire employ 10 people or fewer continues to ring true. A total of 18,180 of local businesses actually have nine staff or fewer, which represents 89.5 per cent of the companies based here.

Only 70 businesses in the county employ more than 250 people – although that figure has risen by five compared to last year.

Moreover, just under 5,000 of the county's businesses enjoy turnover of under £49,000, while the largest proportion of business – 6,046 of the county's total – rake in sales of between £100,000 and £249,000 a year.

Big businesses make up only a small segment of the county's total tally. There are 55 businesses in Shropshire which clock up sales of more than £50 million, up from 40 last year.

Of the five parliamentary constituencies which make up the county, Telford is home to the largest number of bigger businesses, with 20 with turnover of more than £50 million, despite having the smallest total number of businesses at 2,535.

Ludlow is home to the most businesses with 5,200 operating in the vast constituency, which stretches from Broseley to Bishops Castle.

But of those, 3,805 turn over less than £249,000 a year, and 4,770 employ fewer than 10 people – nearly 92 per cent of the total.

Telford, by comparison, has 2,100 similar micro-businesses – just 82 per cent of the total business population.

The business profile of Shrewsbury & Atcham appears to have shifted slightly during the year as well. The county town increased its population of businesses with turnover of under £250,000 by just 10 – while those with sales of more than £1 million increased by 15. That was amid a static backdrop, as the business population of the town increased by just 1.4 per cent.