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

Analysis Report: Economic and Business Activity in Rotherham

Overview

Rotherham’s economic landscape is characterised by a diverse range of sectors, with a significant presence in wholesale and retail trade, construction, and professional services. The city has a total of 84,352 employees, with a notable increase in employment across various sectors. However, the city did not experience any IPOs recently, suggesting a potential area for growth. The city has a healthy mix of small and medium-sized enterprises (SMEs) and companies with foreign parentage, indicating a balanced business ecosystem.

Employment and Business Growth

  • Total Employees: 84,352. The employment growth of 13.30% suggests a thriving job market in Rotherham. Key sectors contributing to this growth include wholesale and retail trade, construction, and professional services.
  • Companies with Employment Increase: 298. This reflects a robust business environment, with many companies expanding their workforce.
  • Top Sectors by Company Count: Wholesale/Retail Trade (1,798 companies), Construction (1,764 companies), Professional Services (1,338 companies). These sectors are pivotal to Rotherham’s economy, collectively comprising a significant portion of the business landscape.
  • Top Sectors with Employment Growth: Businesses in ‘Other business and professional services’, ‘Other technology/IP-based businesses’, and ‘Other manufacturing and engineering’ showed notable growth.

Business Continuity

  • Company Cessations: 1,168 companies ceased operations. This figure indicates challenges in certain sectors, requiring further analysis to identify underlying causes.
  • New Companies (Last 2 Years): 3,217. The city is experiencing a healthy rate of new business formation, suggesting an entrepreneurial spirit and a conducive environment for startups.
  • Scaleups: 71. These companies are critical for economic growth, driving innovation and employment.

Gender Representation in Leadership

  • Founders Gender: 7.69% female, 90.77% male, 1.54% unknown. This shows a gender disparity in business founding, with male founders significantly outnumbering female founders.
  • Directors Gender: 25.53% female, 71.34% male, 3.12% unknown. Although better than the founders’ statistics, there is still a notable gender gap in directorial roles.

Other Indicators

  • SMEs: 8,449. SMEs form the backbone of Rotherham’s economy, indicating a strong small business sector.
  • Exporters: 348. This number could be improved to enhance Rotherham’s presence in global markets.
  • Companies with Foreign Parentage: 323. This suggests a good level of foreign investment and global business connections.
  • Fundraisings: 7. Indicates a moderate level of investment activity.
  • Patent Owners: 467. Reflects the innovation and intellectual property generation in the city.
  • Spinouts: 0. This area appears underdeveloped and could be a focus for future growth.

Conclusion

Rotherham’s economy is diverse and dynamic, with strong performance in several key sectors. The significant growth in employment and the rise of new businesses highlight the city’s economic vitality. However, challenges such as company cessations and a lack of IPOs indicate areas for improvement. Efforts to address gender disparities in business leadership and to foster more spinouts and export activities could further strengthen the economic landscape.

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