Small business success

New research by SME insurance provider, Superscript, has identified the town as the fourth most entrepreneurial town in the UK for 2022.

Analysing new data released by the Office for National Statistics, Superscript calculated that between 2021 and 2022, the number of small businesses in Darlington with up to 49 employees increased by 210, representing a huge 6.6% uplift. Cross-referenced with the latest population figures, this gave Darlington ‘small business per capita’ score of 0.19. This is in contrast to the national trend, with the amount of small businesses across the UK decreasing by 83,000.

This growth was largely driven by the transport and storage sector, which grew by 70 businesses, representing a 45% rise.

Completing the list of the top ten most entrepreneurial towns, in order of position, were Mansfield, Blackburn, Luton, Ipswich, Stratford-Upon-Avon, Maidstone, Bridgend, Maldon, and Scarborough. 

So, why are small businesses setting up now? Business insurer, Superscript’s nationally representative survey of 1,000 new small business owners** suggests that the cost-of-living crisis seems to be a factor behind a lot of the new businesses. Seven out of ten respondents (70%) to the survey agreed that the cost-of-living crisis spurred them to start a business to supplement their salary. Meanwhile, 72% indicated that they set up a business because of the potential to earn more than their current job.

The survey also suggests that the right infrastructure (15%), access to talent (15%), and it being where entrepreneurs already live (14%) are the most influential factors behind small businesses setting up in the locations they do. Entrepreneurs believe their local areas can be most improved through more government funding for local infrastructure (28%) and lower commercial rents (21%). 84% said that they feel positive about the future of their business despite the macroeconomic challenges.

Jamie Bartch, pictured with Amber Kotrri, HOuse of Zana, and Jasmin Robson, Hatch and Hash Bar & Kitchen, cabinet member for economy said: "This is brilliant news and is a testament to our commitment to supporting small and independent businesses in our town centre. In Darlington we cherish all our small and independent businesses and the contribution they make to our great retail and business mix in the town centre and beyond. We have seen increased investment in our town centre allowing small businesses to thrive and grow.

“This result reflects the hard work and creativity of local innovative people who are determined to make their business dream a reality. In addition, our business support and town centre teams offer a wealth of support and advice to anyone who is looking at setting up or is already in, a small business.”

Cameron Shearer, Co-founder and CEO of Superscript, adds: “Congratulations to Darlington for ranking as the fourth most entrepreneurial town in the UK! Darlington didn’t feature in the top 10 in 2021, so the way it has embraced entrepreneurship in the last year is even more impressive against the backdrop of a national decline in small businesses.

“It’s a tough time for entrepreneurs right now, but history teaches us that challenging times are when great ideas and innovations are born, with businesses evolving quickly. That is why flexibility and customisation have become the most important insurance requirements of small businesses coming to us for cover.”

Jackie Mulligan, Founder of ShopAppy - an online platform for local shops - and Government High Street Task Force Expert, said: "The shift of our high streets to more experiential places is a positive opportunity for hospitality businesses in particular. It is clear that the growth of businesses in these locations is also connected to positive efforts by local partners (councils and business improvement districts), strong, supportive communities and effective business networks - all key for entrepreneurs in this challenging climate for local economies"