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What are the top five highest growth sectors for new businesses in Newcastle?

The number of new businesses in Newcastle has grown by 23% since 2010, according to recent research from Lloyds Bank Business Insurance.

Focusing on new business growth between 2010 and 2016, the study found that research, professional, scientific and technical businesses were the fastest growing sectors followed by administrative and support service companies.

One in ten of every new business launched in the area is a food service business, with such new formations jumping by 25% since 2010. With a number of new restaurants launched in the city centre, especially with theintroduction of the Eldon Square Grey’s Quarter development, Newcastle’s restaurant trade is really booming at present.

More broadly, the region’s tourism sector is performing very well. The region will hold the Great Exhibition of the North next year and Newcastle Airport welcomed almost 40,000 more passengers through the terminal in January 2017 than in the same month last year, a jump of 16.2%.

Top 5 sectors

The top five highest growing sectors in the report are as follows:

1. Professional, scientific and technical (26.7% of overall change in business population)
2. Administrative and support service activities (13.2%)
3. Accommodation and food service activities (9.9%)
4. Information and communication (9.4%)
5. Other service activities (8.5%)

Damien McGarrigle, Head of Business Insurance at Lloyds Bank Business Insurance, said: “Our report has uncovered strong business growth in Newcastle over the past seven years and it’s great to see investment in infrastructure benefitting so many business types.

“While this growth creates new opportunities for entrepreneurs in the region, it also means new challenges. Starting a business can be a daunting process and getting to grips with legal requirements, finances and insurance can be a minefield.

“Getting the right advice will help startups get off to a flying start and safeguard their businesses to avoid being exposed to potentially irreversible damage.

“Today, a business’ key assets can be anything from data to intellectual property, along with materials and machinery, so these business-critical assets should be protected.”

Sarah Stewart OBE, chief executive at destination management and marketing agency, NewcastleGateshead Initiative, added: “Newcastle and the wider North East region is home to a varied economy with some real sector strengths, underpinning our position as a growing city in which to do business.

“This research reinforces those strengths, especially around science and technology, where we have more than 500 businesses working in the life science sector alone.

“We’ll have the opportunity to showcase these areas and more as part of Great Exhibition of the North in 2018; a summer-long event telling the story of the North with a clear focus on how we build the economy of tomorrow.”

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