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

Analysis Report: Economic and Business Activity in Birmingham

Overview

Birmingham’s economic landscape presents a dynamic and diverse ecosystem. With 752,400 employees and a significant rise in the number of employees (1,256 employee raisers), the city reflects robust employment and business growth. Key sectors like Wholesale/Retail Trade and Administrative/Support Services dominate, contributing significantly to the city’s economic vibrancy. Emerging sectors like SaaS and Mobile Apps are also gaining momentum, indicating a shift towards a more technology-oriented economy. The balance between traditional and modern industries sets a strong foundation for Birmingham’s future economic trajectory.

Employment and Business Growth

  • Total Employees: 752,400. Birmingham shows strong employment numbers, with a healthy mix of established and emerging sectors contributing to job creation.
  • Employee Raisers: 1,256. This indicates a positive trend in job creation, likely driven by growth in key sectors.
  • Top Sectors: Wholesale/Retail Trade (17.73%), Administrative/Support Services (12.28%), Professional/Technical Activities (10.82%). These sectors form the backbone of Birmingham’s economy, offering a wide range of employment opportunities.
  • Sectors with Most Growth: Software-as-a-Service, Mobile Apps, Business/Professional Services. The growth in these sectors highlights Birmingham’s evolving economic landscape, increasingly leaning towards technology and innovation.
  • Employee Growth Percentage: 14.25%. This significant growth rate reflects the city’s strong economic health and its ability to create new employment opportunities.

Business Continuity

  • Company Cessations: 13432. While this number indicates some businesses closing, it is a natural part of a dynamic economic environment.
  • New Companies in Last 2 Years: 31,786. A robust figure, showing a thriving entrepreneurial spirit and business creation rate in Birmingham.
  • Total Number of Companies: 96,004. This substantial number showcases the city’s large and diverse business ecosystem.
  • Small and Medium Enterprises (SMEs): 62,693. SMEs form a critical component of Birmingham’s economy, driving innovation and employment.
  • Number of Scale-ups: 331. These rapidly growing companies are crucial for economic dynamism and job creation.

Innovation and Global Reach

  • Exporters: 1,526. This demonstrates Birmingham’s global business footprint.
  • Companies with Foreign Parent: 1,935. Indicates strong international connections and investment.
  • Fundraisings: 70. Reflects active investment and finance mobilization in the local economy.
  • Patent Owners: 2,822. Showcases Birmingham’s innovation and intellectual property creation.
  • Grantees: 57. This number, though modest, indicates ongoing research and development activities.

Diversity and Leadership

  • Founders’ Gender: 16.34% female, 82.91% male. Suggests a gender gap in entrepreneurship that could be addressed for more balanced growth.
  • Directors’ Gender: 23.55% female, 69.77% male. Similar to founders, this indicates a gender disparity in leadership roles.
  • Age Distribution of Directors: A diverse age range with a notable presence of directors in the 40-50 age bracket (26.66%).

Conclusion

Birmingham’s economic landscape is marked by robust employment growth, a thriving mix of traditional and emerging sectors, and a strong entrepreneurial spirit. The city’s transition towards technology and innovation-driven sectors like SaaS and Mobile Apps is particularly noteworthy. However, there’s room for improvement in gender diversity among founders and directors. Overall, Birmingham’s economy appears well-positioned for sustained growth and diversification.

Company foundations and cessations over time

Active companies over time

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