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

Analysis Report: Economic and Business Activity in West Lancashire

Overview

West Lancashire presents a diverse economic landscape with strengths in various sectors. The area employs 42,241 people across multiple industries, showing a dynamic business environment. Despite no recent IPOs, the region has experienced a 9.18% employee growth rate, indicating a thriving job market. With 7209 companies, including 947 new ones in the past two years, and a notable presence of 5541 SMEs, the area is a hub for small and medium-sized enterprises. Additionally, the involvement of 204 exporters and 137 companies with foreign parentage demonstrates West Lancashire’s global business connections.

Employment and Business Growth

  • Total Employees: West Lancashire employs 42,241 people. The region has seen a growth in employment, with a 9.18% increase, highlighting a robust job market. The presence of 56 scale-ups signifies a strong potential for future economic expansion.
  • Top Sectors: The leading sectors are diverse, with Administrative and Support Service Activities (1010 companies), Construction (915), and Professional, Scientific, and Technical Activities (910) leading the way. This diversity underlines a balanced economic structure.

Sector Dynamics

  • Top Sectors Raisers: Emerging sectors include Internet platforms, Analytics and Tools, Business Healthcare Supplies and Services, and Recruitment agencies, indicating a shift towards technology-oriented and service-based industries.
  • Key Sectors by Number of Companies: The distribution of companies across sectors like Real Estate, Transportation, Manufacturing, and Information and Communication reflects a well-rounded economic base.

Business Continuity

  • Company Cessations: The data shows 641 companies ceased operations, a natural part of economic churn. The relatively low number, compared to the total number of companies (7209), suggests a stable business environment.

Diversity in Leadership

  • Founders Gender: 8.82% female founders against 88.24% male, pointing towards a gender gap in entrepreneurship.
  • Directors Gender: 29.79% female directors signify better but still unbalanced gender representation in leadership roles.

Conclusion

West Lancashire’s economy is characterised by its diversity in sectors and steady growth in employment. While there are no new IPOs, the increase in employee numbers and the number of new companies indicate a vibrant economic environment. The presence of a significant number of SMEs and companies with international ties underscores the region’s potential for further global integration. The area shows a progressive shift towards emerging tech and service sectors, although there is room for improvement in gender diversity among founders and directors.

Company foundations and cessations over time

Active companies over time

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