Business Dynamism and COVID-19 – an early assessment
Published: 19 April 2020
How will Covid-19 affect business dynamism in the UK? Although, this question is yet to be answered, this paper aims to provide an early assessment by comparing company incorporations and dissolutions in the first quarter of 2020 with the same period in 2019 using the latest available data from the FAME dataset. We observe a drop in incorporations and an increase in dissolutions. The analysis shows that there has been a 70% increase in the number of company dissolutions in March 2020 compared to March 2019. In absolute terms, London had the biggest increase with over 6,400 more dissolutions. In relative terms, this sharp increase was particularly striking in the West Midlands and Wales both of which experienced more than a 100% increase in dissolutions. The sectors particularly influenced by this trend are Wholesale & Retail, Professional Services, Transportation & Storage, Information & Communication and Construction. One important point is that the increase in company dissolutions is driven by young firms which appear as the most vulnerable when facing uncertainty and the current unprecedented challenges.
The UK Government has unveiled a substantive package of support for UK firms, but at the time of writing many firms are struggling to access this assistance and there are some obvious gaps in the range of initiatives announced. If those shortcomings are not remedied quickly, it is foreseeable that we will continue to see a long, slow decline in the number of private-sector firms that support millions of jobs across the economy. In that context, rather than seeing a V-shaped downturn and rebound as some economists such as the OBR have predicted, we could instead see an L-shape recession dragged down by a net loss of companies over a long period.
Productivity and performance
Published: 2 May 2013
The UK Local Growth Dashboard has been developed by the Enterprise Research Centre (ERC) and builds on the LEP Growth Dashboard first launched in June 2014. Its purpose
is to present a set of growth metrics for start-ups and existing firms across a range of sub-national geographies in the UK (NUTS 2) with a specific focus on each of the 39 English Local Enterprise Partnership (LEP) areas1.
Alongside these metrics it provides some other contextual data for each LEP including the changing sectoral composition of local economies over time. The Local Growth Dashboard can be used as a source of evidence to inform discussions on priorities in business support concerning small business growth and includes easily understood metrics which can be readily updated on an annual basis.
This report is designed to simply present the data for others to use and it is not the intention here to investigate the reasons for these variations as that can be found elsewhere in the research outputs of the ERC and the wider research and policy literature.
Download the UK Local Growth Dashboard 2016 Data here : https://www.enterpriseresearch.ac.uk/wp-content/uploads/2016/11/ERC-UK-Local-Growth-Dashboard-2016-master_final.xlsx
Published: 13 November 2016
Does the City of Culture (COC) create long-term benefits? Comparing the performance of Derry-Londonderry to other short-listed cities. ERC Insight Paper
Evidence on the long-term effects of Cities of Culture (COC) is limited. Here, we compare the pre- and post-COC performance of the UK COC for 2013 Derry-Londonderry (D-L) with that of the other shortlisted cities. There is some evidence that despite weaker growth performance prior to the COC the post-COC GDP growth of D-L has been significantly stronger. This post-COC growth effect is particularly evident in Distribution, transport, accommodation and food and construction. The COC also led to a step-change in visitor numbers to D-L, a positive effect which persisted through to 2016 at least. Job creation through inward investment was also stronger in D-L in the post-COC period. We cannot establish any direct causal connection between COC 2013 and these trends but suggest that the evidence does at least suggest a prima facie case for the positive longer-term benefits of COCs
Published: 17 September 2019
Enterprise Research Centre
Warwick Business School
University of Warwick
Coventry CV4 7AL
Enterprise Research Centre
Aston Business School
Birmingham B4 7ET
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