Overview
Newham’s economy showcases a diverse range of sectors with a strong presence in wholesale and retail trade, construction, and administrative support services. The area has witnessed significant growth in employment, with a notable increase in the number of companies, especially in the SME sector. However, the region shows no new IPOs, which could be a point of concern for future economic expansion.
Employment and Business Growth
- Total Employees: Newham employs 145,750 individuals. The 12.12% employee growth rate indicates robust job creation.
- Top Sectors by Employee Growth: Internet platforms and clothing retail sectors have seen the most significant rise in companies, suggesting a shift towards digital and consumer-focused businesses.
- SMEs and Exporters: With 24,057 SMEs and 229 exporters, Newham shows a strong foundation in small and medium-sized enterprises, contributing significantly to the local economy.
- Company Scale-Ups: The presence of 48 scale-ups is a positive indicator of business maturity and potential for further economic contributions.
Sector Dynamics
- Dominant Sectors: Wholesale/retail trade and construction are dominant, comprising over 36% of the business landscape.
- Emerging Sectors: The rise in ‘Internet platform’ and ‘Other retail’ sectors suggests a trend towards digitalisation and diversification in retail.
Company Trends
- New Companies: There have been 9,790 new companies in the past two years, indicating a vibrant entrepreneurial environment.
- Company Cessations: However, the high number of ceased companies (7,709) raises concerns about business continuity and market challenges.
Business Continuity
- Company Cessations: Newham faced 7,709 company cessations, highlighting potential challenges in business sustainability.
Gender Diversity in Leadership
- Founders: The gender distribution among founders is skewed, with 76.39% male, 22.22% female, and 1.39% unknown.
- Directors: Similar trends are seen in director roles, with 69.73% male and 23.16% female, indicating a gender gap in leadership positions.
Conclusion
Newham’s economy is characterised by strong employment growth, a vibrant SME sector, and diversity in business sectors. The rise in digital and consumer-focused businesses reflects a modernising economy. However, the high number of company cessations and the lack of IPOs signal challenges in business sustainability and capital market activity. Efforts to bridge the gender gap in leadership roles are also needed for more inclusive economic growth.