Lincoln broke economic records for new company registrations and net company growth in 2012, according to new research.
A report from company formation specialists Duport shows there were 1,926 company registrations during 2012, more than any other year on record for the city.
The data was compiled and analysed by Duport using public record data from sources including Companies House, Office for National Statistics and Ordnance Survey.
Net company growth reached an all-time high, with the company register growing by 1,100.
Lincoln also broke its own record for UK company share during 2012. This figure has been rising steadily since 2008, suggesting the area is becoming increasingly important to the national economy.
The diverse business base of Lincoln could be key to its success, the report indicates.
Although traditional industrial work has decreased, there is a growing IT economy, and a number of e-commerce mail order companies have set up in or around the city. As a result, the area has become a distribution hub, which has led to many new logistics companies setting up.
The Duport report shows that the top four words used in new business names last year were Transport, Logistics, Driving and Haulage.
Peter Valaitis, Managing Director of Duport, said: “Lincoln has a lot going for it, so it’s hardly surprising we are seeing so many economic records set at the moment. A stable tourist trade, growing IT sector and a diverse business base make it the ideal place to set up a new company.”
Simon Beardsley, Chief Executive at the Lincolnshire Chamber of Commerce, said: “It is encouraging to see another survey which shows a more positive view of Lincoln’s economy than might be evident following recent national headlines.
“The results of Duport’s research echo that of yhe Lincolnshire Chamber’s Quarterly Economic Survey, which was released a few weeks ago. Together they give us a wealth of data and information about how business is changing in the county and what needs to be done to nurture future growth.
“The report also shows us that the city has a pool of entrepreneurs across a diverse business base. And whilst the decrease in traditional industrial work is of concern and every effort is being made to help this sector embrace new opportunities, there is a real need for organisations such as the Lincolnshire Chamber to bring funded business support and training programmes to start up business – because they will be the city’s future.”
Lincoln confidence report findings
A total of 1,926 companies were formed in Lincoln in 2012. This total is 34.7% higher than in 2011 and compares favourably to the UK figure of a 8.6% growth compared to 452,870 the previous year.
A total of 826 companies were dissolved in Lincoln in 2012. This total is 59.2% higher than in 2011 and compares favourably to the UK figure of 6.6% decrease compared to the previous year.
The percentage of female directors in Lincoln in 2012 was 35.8%. The average for the UK during this time was 29.9%. The record year for female directors in Lincoln was 1860 when 35.7% of all directors were female.
The average age of a director in 2012 was 45-years-old.