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

Analysis Report: Economic and Business Activity in Somerset

Overview

Somerset’s economic landscape exhibits a diverse array of sectors with significant activities in professional, scientific, and technical activities, which lead the sectoral chart. The region has seen a healthy growth in employment, with a notable increase in the number of employees. However, the absence of IPOs indicates a potential area for future development in the capital markets sector. The gender diversity in company leadership, particularly at the director level, shows progress yet highlights room for improvement.

Employment and Business Growth

  • Total Employees: Somerset reports a total of 94,287 employees, with an employee growth rate of 6.75%. This suggests a robust job market and expanding business activities.
  • Employee Raisers: 552 companies have contributed to this employment growth, signaling a healthy expansion across multiple sectors.

Sector Dynamics

  • Top Sectors: The leading sector is ‘Professional, scientific and technical activities’ with 1,366 companies, followed by ‘Wholesale and retail trade / repair of motor vehicles and motorcycles’ (1,127 companies), and ‘Construction’ (1,023 companies). These sectors form the backbone of Somerset’s economy.
  • Rising Sectors: Sectors such as ‘Food and drink processors’ and ‘Restaurants and cafes’ are among those showing notable growth, indicating a dynamic shift in the local economy.
  • Total Companies: There are 8,872 companies in Somerset.
  • New Companies (2 Years): 1,809 companies have been established in the last two years, reflecting an entrepreneurial spirit and a conducive environment for new businesses.
  • Scale-ups: 182 companies are identified as scale-ups, demonstrating significant growth potential in the region.

Business Continuity

  • Company Cessations: There were 194 company cessations and 83 companies declared dead, indicating challenges in sustaining business operations for some sectors.

Gender Diversity in Leadership

  • Founders: 18.75% of founders are female, while 78.85% are male. This shows a gender gap in entrepreneurial initiatives.
  • Directors: Female directors constitute 29.22%, and male directors 66.91%. The data reflects a gender imbalance in corporate leadership.

Conclusion

Somerset’s economy is characterised by robust growth in employment and a diverse sectoral presence, with significant activities in professional services and construction. The rise in new companies and scale-ups is promising for future economic vitality. However, challenges in company sustainability and gender diversity in leadership positions need attention. The absence of IPOs indicates potential untapped areas in the capital markets. Overall, Somerset’s economic health is strong, with opportunities for improvement in specific areas.

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