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

Analysis Report: Economic and Business Activity in Bath and North East Somerset

Overview

Bath and North East Somerset showcase a dynamic economy with diversified sectors. The total employee count stands at 187,686, reflecting a robust employment scenario. The presence of sectors like Professional, Scientific and Technical activities, Construction, and Information and Communication indicates a balanced mix of traditional and modern industries. Notably, the region hasn’t experienced any IPOs, suggesting a focus on private or smaller-scale enterprises.

Employment and Business Growth

  • Total Employees: 187,686. The region has experienced significant employment growth, with 375 companies reporting an increase in employees. This suggests a healthy job market and business expansion.
  • Employee Growth Percentage: 6.997%, indicating a vibrant and growing economy.
  • Top Sectors with Employment Growth: The sectors contributing most significantly to employment growth include Internet platforms, Software-as-a-Service (SaaS), and other business and professional services, showcasing a tilt towards technology and modern service industries.
  • Number of Scaleups: 63, which are companies showing substantial growth over a short period. This is a positive indicator of the region’s entrepreneurial dynamism.

Sector Dynamics

  • Top Sectors by Company Count: The leading sectors are Professional, Scientific and Technical activities (2,636 companies), Construction (1,504), and Information and Communication (1,395). This diversity reflects a robust and multifaceted economic base.
  • Sectors with Most New Companies: Internet platforms and Software-as-a-Service (SaaS) are among the sectors with the highest number of new companies, indicating a growing trend towards digital and technology-based businesses.
  • Total Companies: 14,092, a healthy number reflecting a diverse business ecosystem.
  • New Companies in the Last 2 Years: 2,537, showing a promising rate of new business formation.
  • SMEs: 11,058, forming the backbone of the local economy.
  • Exporters: 288, indicating a degree of international business engagement.
  • Companies with Foreign Parentage: 515, suggesting international investment and global business connections.

Business Continuity

  • Company Cessations: 1,083 companies have ceased operations, which is a natural part of the business life cycle and may reflect market dynamics and competition.

Gender Diversity and Leadership

  • Founders by Gender: 15.65% female founders and 82.82% male founders. This highlights a gender gap in entrepreneurship that could be an area for targeted development.
  • Directors by Gender: 30.71% female directors, 64.84% male directors. While there is more gender diversity in leadership roles compared to founding roles, there’s still room for improvement.
  • Age Distribution of Directors: A broad age distribution among directors, with a significant proportion (over 30%) above 60 years, indicating experienced leadership.

Conclusion

Bath and North East Somerset’s economy is characterized by a strong employment base, diverse sectors, and a healthy rate of new business formation. The dominance of sectors like Professional Services and Technology points towards a modern, service-oriented economy. However, the region faces challenges in gender diversity among founders and directors, as well as a lack of IPOs, which could indicate limited growth opportunities for larger-scale enterprises. Overall, the economic landscape is vibrant but could benefit from increased focus on inclusivity and support for scaling businesses.

Company foundations and cessations over time

Active companies over time

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