A new study has revealed that Aberdeen was the only major city to create more companies than it lost in 2010 when the UK came out of recession.
The findings released by Chartered Accountants UHY Hacker Young show that the Scottish city is benefiting greatly from the knock-on effect of being the oil capital of Europe.
High oil prices is a contributing factor in attracting companies to the area as 3.7 new businesses per 10,000 people were created in 2010, which equates to 1,035 new companies being created, while 955 businesses closed.
The research ranked the top 50 towns and cities in the UK by new business creation and Aberdeen topped the table ahead of Edinburgh, Manchester, Reading, Oxford and Luton.
London was 28th overall. Some 52,755 new companies were created in London in 2010 and 60,290 businesses closed.
In total, 235,145 businesses are reported to have been created in 2010 in the UK, compared to 297,395 businesses that were forced to cease trading.
Commenting on the statistics, UHY Hacker Young’s Marc Waterman said: “The boom in oil prices has seen Aberdeen thrive, not just because of the North Sea, but also because it has become a global centre of excellence for oil services companies.
“The high oil price has also meant more exploration work by the independents, many of whom are based in Aberdeen.
“The oil boom has also allowed many local entrepreneurs to cash out, selling their companies to private equity investors, or to larger oil companies, creating a growing band of self-made millionaires.
“With oil prices currently in excess of $100 a barrel, investment is expected to continue to pour into Aberdeen, which will no doubt boost consumer spending in the area.
“Manchester’s strong performance amongst the Top 50 is no surprise either as the city is renowned for its support of small businesses. Manchester has a real entrepreneurial spirit, which is reflected in the strength of its business and manufacturing sectors.
“Manchester has been highly successful in attracting new businesses keen to make use of its highly trained but comparatively low cost workforce – including the BBC.
“While the economies of other major UK cities suffered as a result of the recession, Aberdeen was able to buck the national trend by continuing to create more new businesses than it lost.
“London, normally the powerhouse of the UK economy, was clearly hobbled by its over-reliance on the financial sector.”
(Photo courtesy of Bernt Rostad on Flickr)
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