Overview
Havering’s economic landscape is characterised by a diverse range of industries, with construction leading the sector dynamics. The council has a total of 72,394 employees, indicating a robust workforce. Interestingly, 19 sectors have shown growth, highlighting an evolving economic environment. Despite no new IPOs, the presence of 89 scaleups and a 9.13% employee growth rate signals a dynamic business ecosystem. Small and medium enterprises (SMEs) and new companies formed in the last two years represent a significant portion of the business community, showcasing entrepreneurial spirit. The gender distribution among founders and directors shows a lean towards male dominance, with female representation needing improvement. The presence of young directors in companies is notable, providing insights into the leadership trends within the region.
Employment and Business Growth
- Total Employees: 72,394 employees in Havering show a healthy employment rate. The 9.13% growth in employee numbers reflects a positive trend in job creation.
- Sectors with Employee Growth: Construction, retail trade, professional and technical activities, administrative support, and real estate are the top sectors. This diversification suggests a balanced economic development across various industries.
- Scaleups: The presence of 89 scaleups is a strong indicator of Havering’s nurturing environment for growing businesses, contributing to job creation and economic dynamism.
Sector Dynamics
- Top Sectors by Company Numbers: Construction (19.4%), Wholesale/Retail Trade (12.93%), Professional/Technical Activities (10.91%), Administrative Support (10.58%), and Real Estate (10.41%) dominate Havering’s business landscape.
- Emerging Sectors: Sectors like Other Personal Services, Technology/IP-based Businesses, Automotive, and Mobile Apps, though small in number, represent emerging areas of business innovation.
Business Continuity
- Company Cessations: The absence of data on company cessations leaves a gap in understanding business continuity and failure rates.
- New Companies in 2 Years: 3,570 new companies in the last two years indicate a robust startup ecosystem and entrepreneurial activity.
- SMEs and Exporters: 16,572 SMEs form the backbone of the local economy, with 246 exporters suggesting a degree of international engagement.
Leadership and Diversity
- Founders’ Gender: 15.19% female founders versus 83.54% male founders point towards gender disparity in entrepreneurship.
- Directors’ Gender: 26.35% female directors to 68.45% male directors show similar trends in leadership roles, highlighting a need for greater gender diversity.
- Young Companies with Young Directors: 1,087 young companies with young directors indicate a promising trend of youthful leadership in the business sector.
Conclusion
Havering’s economic health is marked by a growing workforce, diverse sectoral presence, and a vibrant startup scene. However, areas like gender diversity in leadership and understanding of business continuity need more focus. The council’s nurturing environment for scaleups and SMEs, coupled with a surge in new companies, paints a picture of a dynamic and evolving economic landscape.