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

Analysis Report: Economic and Business Activity in Test Valley

Overview

Test Valley showcases a diverse economic profile with significant activity across various sectors. With a total of 55,457 employees and a 7.63% employment growth rate, the area is experiencing positive dynamics in its workforce. The distribution of companies across different industries reveals a strong presence in professional, scientific, technical, and construction activities. Notably, the region’s business landscape is heavily influenced by small and medium-sized enterprises (SMEs), with a total of 6,794 SMEs contributing to the local economy. The data also indicates a healthy entrepreneurial environment, reflected in the number of new companies (933 in 2 years) and the presence of young companies with young directors.

Employment and Business Growth

  • Total Employees: 55,457 employees, indicating a robust workforce. The employment growth rate of 7.63% points towards a thriving job market.
  • Sectors with Employment Growth: The top sectors showing growth are Software-as-a-Service (SaaS), machinery, electrical components, healthcare products, and distribution.

Sector Dynamics

  • Top Sectors: Dominant sectors include professional, scientific, and technical activities (17.48%), construction (11.09%), and wholesale/retail trade (11.04%).
  • New Sectors Rising: Sectors like SaaS, machinery, and healthcare products are emerging, suggesting a shift towards technology and innovation.
  • Total Companies: 8,757 companies reflect a diverse and active business environment.
  • New Companies: 933 new companies in the last two years, indicating a dynamic and growing entrepreneurial landscape.
  • Scale-ups: 54 scale-ups suggest an environment conducive to business growth and development.

Business Continuity

  • Company Cessations: 862 companies ceased operations, highlighting challenges in sustaining business in certain sectors.
  • SMEs and Exporters: 6,794 SMEs and 334 exporters underline the importance of small and medium enterprises in the economy.

Gender Representation

  • Founders: 13.04% female founders, suggesting a need for greater gender diversity in entrepreneurship.
  • Directors: 27.93% female directors, indicating a moderate level of gender diversity in leadership positions.

Conclusion

Test Valley’s economic landscape is characterised by a strong and growing workforce, a diverse range of active sectors, and a significant number of SMEs. While there is positive growth in employment and new companies, challenges remain in company sustainability and gender diversity in leadership roles.

Company foundations and cessations over time

Active companies over time

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