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North of England tops league table for ‘entrepreneurial mobility’

Entrepreneurs in the North of England are seeing the fastest growth according to a new study with northern regions topping a new UK-wide league table for entrepreneurial mobility, created by leading business services provider Optionis.

The league table is based on findings from over 7,000 individual enterprises ranging from freelance and contract workers to small limited companies.

The research examines the rate at which businesses have grown over the last three years, and also looks at the propensity for entrepreneurs to make the move from operating as a freelancer or contractor to organising themselves as a limited company.

The North East and Yorkshire were found to have the highest rates of mobility, with 3.14% of freelancers or contractors establishing limited companies in the first two quarters of 2013. This was closely followed by the North West, with a rate of 3.07%.

The research also shows the rate at which these numbers have increased since 2011, before signs of an economic recovery became visible. For the UK as a whole, the rate at which entrepreneurs are forming limited companies has increased by 70%. This is highest in Scotland where the increase has been 467%.

This measure of entrepreneurial mobility shows how well smaller enterprises are faring in the UK economy and, as such, can be seen as a key indicator of business conditions and confidence amongst emerging businesses.

Derek Kelly, managing director at Optionis, said: “These growth trends are significant because they indicate that freelancers and contractors are gaining more confidence in their earning potential.

“Secondly, they suggest that entrepreneurs are becoming more confident of business opportunities lasting in the longer term and, finally, that they are willing to commit more time to running their businesses because they expect to reap greater rewards.

“The evidence is that, compared to 2011, we’re seeing considerably more upward mobility amongst the UK’s freelancers, contractors and small business owners.

“This is significant as it is these people that will go on to be the innovators, employers and wealth creators of the next 10 to 20 years. Their ability to get on and grow is a good indicator of the health of the UK’s business eco-system.”

The full report can be read here (http://www.parasolgroup.co.uk/for-contractors/freelancer-and-umbrella-contractor-prospects-go-under-the-spotlight/).

The figures for UK regions (excluding Northern Ireland) are:

Region of the UK

Current propensity to form limited companies

Rate at which this figure has grown since 2011

South East

1.74

2.97%

North West

3.07

274%

East Midlands

2.06

196%

Scotland

2.33

467%

Wales

2.92

118%

North East and Yorkshire

3.14

128%

London

1.9

65.37%

West Midlands

1.93

44.58%

South West

2.82

230%

The Optionis group is home to Parasol, the UK’s largest professional employment organisation (PEO), small business services provider ClearSky and cloud-based performance management software Silverline. Optionis has offices in Warrington, Manchester, Poole and London.

For more information, please visit www.optionis.co.uk

This was posted in Bdaily's Members' News section by PR Agency One .