Is Rotherham really the tenth worst place to start a business?

Carrie Sudbury, chief executive of Barnsley & Rotherham Chamber said the study did not give a true picture — but noted the overall drop in businesses in the borough was a cause for concern.

The head of Rotherham Investment and Development Office, meanwhile, insisted the town was a great place to do businesses.

Research from website Utility Bidder concluded two South Yorkshire locations were in the top ten worst UK areas to start and maintain a new business, with Rotherham tenth and Barnsley fifth.

Area were ranked on a range of measures, including average broadband speed, the number of “business births”, media salary, education levels, the employment rate and and the “one-year survival rate”.

Bristol, Edinburgh and Leeds topped the table, while Sunderland was rock bottom.

Rotherham had 1,135 new businesses founded in 2021, bringing its overall total to 8,600, of 92.7 per cent of businesses established in 2020 survived their first year.

The media salary last year was £24,246, employment was at 74.1 per cent and the average download speed was 89.4 mbps.

Ms Sudbury said the data presented “tends to over-simplify the reasons why individuals make the often life-changing decision to start their own business, and with large parts of the UK omitted, it would be incredibly unfair to say that this is a true representation of business start-ups”.

She added: “Of the information included in the report, the findings and weightings are somewhat misleading.

“Areas with larger populations will inevitably result in more new businesses being created.

“For example, it is perhaps no surprise that when it comes to the numbers of start-ups created in the UK, London, Birmingham and Manchester — the UK’s three largest cities — top the table.

“It is easy to take this data out of context and there are often many different, hidden factors that influence the reasons why individuals choose to launch or close their own companies.

“Having said this, the ONS data which this report is based on also revealed that during the past 12 months Rotherham was the only area in South Yorkshire where more businesses closed their doors than started trading and this is clearly a cause for concern.

“The gulf between towns like Rotherham and larger cities in the UK is widening and the real challenge facing many communities, is addressing regional inequalities.

“Delivering a meaningful and workable levelling up programme, backed by action is vital to helping towns like Rotherham to unlock their full potential.”

Tim O’Connell, head of Rotherham Investment and Development Office, insisted Rotherham was a great place to start and grow a business, “as evidenced by companies such as AESSEAL who have built a world leading business here, rapidly growing innovative companies such as SBD Apparel expanding at the AMP, and exciting new businesses developing future technologies such as The Ultimate Battery Company”.

Mr O’Connell said enquiries to RIDO’s Launchpad business start-up service were up 45 per cent over the past three months, when compared to the same period last year, and the services had helped 300 entrepreneurs develop new business ideas in the past year.

“Since 2000, our business hubs have supported over 850 businesses and the one-year survival rate in our business hubs is over 95 per cent,” he said, “which shows that Rotherham is a place where businesses can thrive, particularly with the right help and support”.

Mr O’Connell pointed to investment at Forge Island, Swinton town centre, the Dearne Valley and the Advanced Manufacturing Park in Catcliffe and the involvement of the likes of Rolls Royce and McLaren as signs of the Rotherham economy continuing to grow.

He added: “We are also working with partners through the Levelling Up fund to provide residents with access to the skills training they need to be successful in the workforce.”

Anyone aiming to start a business can contact RIDO should call 01709 300100.

Visit https://tinyurl.com/UBbusinesshotspots to read the full Business Hotspots report.