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Derby SMEs to generate stunning £4.7 billion for city’s economy by 2020

  • Rise in SME numbers will create 5,000 jobs by 2020
  • Number of SMEs in Derby up 19% since 2010
  • SME growth a result of low business rates, comparatively low cost of living, and city’s enterprise zone

Derby’s economy will receive a £4.7 billion boost each year by 2020 as a result of the growing number of small and medium sized enterprises (SMEs) in the city, a report has found. The rise will create 5,000 more jobs for the city before the end of the decade.

The research for npower Business, conducted by Capital Economics, found that the number of SMEs in Derby has already risen by 19% since 2010, creating 5,600 new jobs.

These enterprises generate a stunning £4.1 billion in “value added” to the city’s economy, with the figure set to rise to £4.7 billion per annum by 2020.

SME growth in the city is supported by relatively low business rates, a comparatively low cost of living, and further boosted by the city’s enterprise zone, Capital Economics found. Good broadband connectivity and low business rates also provide a boost for the town. 

Of the ten fastest growing SME industries, Derby has existing “clusters” in four:
health, education, machinery repair, and architectural and engineering activities. SME growth in the city is further supported by the government’s “D2N2” growth hub that provides specialist advice on training, growth and funding.

The report highlighted the huge contribution SMEs make to UK economic and employment growth. The top 15 UK cities – Derby among them – with the best growth prospects for SMEs will generate an additional £16 billion for the UK economy each year by 2020, it found. SMEs currently provide jobs for 16.8 million people – over 50 per cent of all UK employment.

Philip Scholes, Head of npower Business, said: “SMEs have been the backbone of the economy, and as this research shows, there is significant opportunity for them to grow further in the coming years ahead. At npower Business, we are dedicated to working closely with Derby’s SMEs to help support the huge contribution that they make to the economy.”

Dale Murray, CBE & Board Advisor at the Centre for Entrepreneurs: “There are fantastic opportunities in Derby for entrepreneurs to start new businesses and to expand existing ones, as this report shows.

She added: “Affordable business rates, living conditions and workforce skills are vital to attracting SMEs. I hope policy makers continue to do everything they can to support them so that they will continue to thrive in the city.”

npower Business and Dale Murray will be hosting a webinar on Wednesday 14 September at 11am to share detailed results from the report with SMEs and help them take advantage of growth opportunities. To find out more about the webinar please visit here.

About npower Business
npower Business is one of the leading energy suppliers to the UK business market, serving gas and electricity to more than 195,000 small-to-medium sized businesses (SMEs). 

Dedicated to helping UK SMEs, by helping our customers better understand and manage energy, we help them to reduce their energy costs and in turn improve their bottom line.

We’re in touch with more than 1000 SMEs and through them, we hear what business owners want from their energy company and the issues they face when running a business.

npower Business is part of npower Group

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About Dale Murray
After an early corporate career, Dale co-founded Omega Logic, a technology "solution provider" that co-launched prepay mobile phone top-ups in the UK in 2001. She sold her company and began investing in startups, winning the British Angel Investor of the Year in 2011.

She now holds a number of board positions in the public and private sector and was honoured with a CBE in June 2013 by HM the Queen, for services to business. She served on the Business Taskforce for David Cameron, the British Prime Minister, in 2013 for a report on EU Red Tape. Debretts named her one of the "500 most influential people in Britain" in 2015.