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The information is accurate as of 31 December 2022.
Data courtesy of Beauhurst.

Analysis Report: Economic and Business Activity in South Tyneside

Overview

South Tyneside’s economic landscape is shaped by a diverse mix of sectors, with notable strengths in construction, professional, scientific and technical activities, and wholesale and retail trade. The region has a total employment base of 26,650 individuals, witnessing a significant 7.59% growth. The presence of scaleups and a healthy influx of new companies highlight an entrepreneurial spirit, although the absence of IPOs suggests a focus on private and smaller scale businesses. Gender diversity in leadership positions is moderately balanced, with a notable presence of female founders and directors.

Employment and Business Growth

  • Total Employees: South Tyneside employs 26,650 individuals. The 7.59% employee growth indicates a robust job market, potentially driven by the emergence of 22 scaleup companies and a healthy influx of 827 new businesses over the last two years.
  • Top Sectors by Company Numbers: The leading sectors are Construction (785 companies), Professional/Technical Activities (745), and Retail Trade (640). These sectors form the backbone of the local economy, offering a range of employment opportunities.
  • Top Sectors with Rising Company Numbers: Notable growth is observed in Sporting Events and Clothing sectors, each adding a company. This could indicate niche market opportunities or emerging trends in these areas.
  • Company Cessations: There are 670 companies that ceased operations, suggesting a competitive market where not all ventures thrive.

Business Continuity

  • New Companies: In the last two years, 827 new companies have been established, showing vibrant entrepreneurial activity and business confidence in the region.
  • SMEs and Exporters: With 3,801 SMEs and 115 exporters, the region demonstrates a strong base of small and medium enterprises contributing to both local and international markets.
  • Companies with Foreign Parentage: The presence of 52 companies with foreign parentage signifies international investment and global connections.

Leadership and Innovation

  • Gender Diversity in Founders and Directors: Founders are 16.22% female and 78.38% male, indicating a gender gap in entrepreneurship. Directors are more balanced, with 25.04% females and 72.52% males.
  • Young Companies with Young Directors: The presence of 255 young companies with young directors signifies a youthful and dynamic entrepreneurial ecosystem.
  • Innovation Indicators: South Tyneside shows modest innovation activity, with 19 patent owners and 2 grantees, but no recorded IPOs or spinouts.

Conclusion

South Tyneside’s economic landscape is characterised by a robust employment market, diverse sectoral strengths, and a dynamic entrepreneurial environment. The region shows healthy business growth, with new companies emerging in various sectors. Leadership diversity is progressing, with a notable female presence. The innovation ecosystem, though modest, indicates potential for future growth.

Company foundations and cessations over time

Active companies over time

The information is accurate as of 31 December 2022.
Data courtesy of Beauhurst.