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

Analysis Report: Economic and Business Activity in Midlothian

Overview

Midlothian’s economic landscape is marked by a diverse range of sectors, with a significant presence in professional, scientific, technical activities, and construction. The region shows a healthy mix of established and emerging companies, indicated by a notable number of new companies and scale-ups. The gender diversity in founding and director roles shows room for improvement, with a male predominance. The absence of IPOs suggests a focus on steady growth over rapid expansion strategies.

Employment and Business Growth

  • Total Employees: Midlothian has 21,092 employees, with a 7.56% growth. This indicates a robust employment landscape, benefiting from 442 companies reporting increases in employee numbers.
  • Top Sectors: The leading sectors are professional, scientific, and technical activities (575 companies, 16.69%), construction (535 companies, 15.53%), and wholesale/retail trade including motor vehicle repair (399 companies, 11.58%). This diversity suggests a balanced economic structure.
  • Top Sectors with Rising Company Numbers: Sectors like research tools/reagents and agriculture and farming are showing a rise in company numbers, indicating emerging areas of economic activity.
  • Scaleups: The presence of 23 scaleups reflects a dynamic business environment supporting growing companies.

Business Continuity

  • Company Cessations: Midlothian witnessed 370 company cessations, juxtaposed against 3,573 total companies. This indicates a relatively stable business environment with a low cessation rate.
  • New Companies in 2 Years: With 895 new companies in the last two years, the region shows a strong entrepreneurial spirit and a conducive environment for startups.
  • SMEs and Exporters: There are 2,606 SMEs and 71 exporters, demonstrating the region’s backbone in small and medium enterprises with a modest international reach.
  • Foreign Parent Companies: The presence of 28 companies with foreign parentage suggests international investment and global business ties.

Gender and Age Diversity in Leadership

  • Founders’ Gender: 23.38% female founders, 74.03% male, indicating a gender gap in entrepreneurship.
  • Directors’ Gender: 28.19% female directors vs. 67.43% male, reflecting similar gender dynamics in leadership roles.
  • Age Distribution of Directors: Directors are spread across age groups, with the majority (50.73%) aged between 40-60 years, showing a blend of experience and relatively mature leadership.

Innovation and Growth Potential

  • Fundraisings and Patent Owners: With 17 fundraisings and 76 patent owners, there’s evidence of innovation and investment in new ideas.
  • Grantees: 8 grantees indicate some level of research and development activity, potentially leading to future growth.

Conclusion

Midlothian’s economic profile is characterised by a healthy mix of various sectors, a strong presence of SMEs, and a growing number of new companies. The gender disparity in leadership roles presents an area for improvement. The absence of IPOs and a moderate number of scale-ups suggest a focus on sustainable growth rather than rapid expansion. Overall, Midlothian presents a stable and diverse economic environment with potential for further development in emerging sectors.

Company foundations and cessations over time

Active companies over time

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