Liverpool stands as a beacon for small business owners, boasting a rich entrepreneurial spirit that is both resilient and welcoming. The city’s collaboration with academia fosters innovation, whilst its historical status as a pioneering centre enhances its attractiveness to new ventures. It has been ranked within the top places in the UK to start a business, a testament to its supportive business ecosystem.
The city offers various advantages for small enterprises, including a strategic location and strong transport links. Liverpool’s position as a coastal city means businesses here benefit from access to domestic and international markets via its famous port.
Moreover, a range of innovative businesses call Liverpool home, contributing to a dynamic atmosphere that can be a catalyst for small business growth.
Often praised for its cultural vibrancy and community cohesion, Liverpool provides an inspiring backdrop for entrepreneurs. With a regional economy worth billions and a track record of successful business developments, it represents a city that not only supports but also celebrates small business endeavours.
Business Landscape in Liverpool
In recent years, Liverpool has emerged as a bustling hub for entrepreneurs, marked by a robust economic growth and an expanding business support network.
Economic Overview
Liverpool’s economy is characterised by its remarkable resilience and diversity. As the UK’s second-largest regional economy, the region exhibits a significant economic footprint. Its strategic position has allowed for a conducive business climate, bolstered by investment and a buoyant labour market.
Growth Sectors
Several key sectors drive Liverpool’s economic engine, most notably in the life sciences, advanced manufacturing, creative and digital industries. The city has a rich legacy in innovation, with these sectors benefiting from Liverpool’s extensive pool of talent and its strong collaborative links between industry and academia.
Business Support Infrastructure
Entrepreneurs in Liverpool have access to a comprehensive support network, encompassing a variety of co-working spaces, incubators, and accelerators. This infrastructure ensures that startups and small businesses can thrive, with ample opportunities for networking, mentorship, and development.
Starting a Small Business in Liverpool
Liverpool has garnered reputation as a prime location for entrepreneurs looking to establish and grow their small businesses, offering a broad spectrum of support systems and resources.
Legal Considerations
When initiating a business in Liverpool, entrepreneurs must register their business with Companies House and adhere to UK company law. Liverpool’s business landscape is regulated to ensure fair practice, and owners must comply with local trading standards and health and safety regulations. It’s advisable to seek legal counsel to navigate through these laws effectively.
Financial Incentives
Liverpool offers various financial incentives to small businesses, such as lower operational costs compared to many other cities in the UK. The city provides grant schemes, funding opportunities, and tax reliefs aimed at encouraging small business growth and innovation.
Networking Opportunities
Networking is key to business success in Liverpool. The city hosts numerous events, such as the International Festival for Business, providing platforms for entrepreneurs to connect. Additionally, there are a host of business networks and cooperatives that entrepreneurs can join to share resources and knowledge.
Cost of Doing Business
The cost of doing business in Liverpool presents favourable conditions for small businesses, particularly when compared with larger cities. Liverpool offers competitive rates in commercial real estate, a lower cost of living, and labour costs that can contribute to the overall reduced expenses for enterprises considering setting up in the city.
Commercial Real Estate
In Liverpool, office rents for refurbished Grade A space can be found at substantially lower rates than in London, with prices ranging from £27.50 to £40.00 per square foot. The availability of such affordable commercial spaces is a significant draw for new and growing businesses.
Cost of Living
The city is noted for its comparably lower living costs, which can ease financial pressures on both businesses and their employees. A one-bedroom apartment in the city centre averages at approximately £655.42, and even less outside the centre, which implies more disposable income for residents and possibly higher relative consumer spending.
Labour Costs
Businesses in Liverpool may benefit from generally lower wage demands due to the city’s cost of living. This can result in more manageable payroll expenses, allowing for potentially greater investment in growth and development.
Access to a skilled workforce at reasonable labour costs is yet another advantage for small businesses operating in Liverpool.
Success Stories of Liverpool Small Businesses
Liverpool’s landscape for small businesses is marked by a collection of triumphs that speak to the city’s supportive environment for entrepreneurship.
- Innovative Ventures: In the wake of Global Goals Week, 17 local enterprises were recognised for their efforts in amplifying awareness and action related to the Sustainable Development Goals. These range from large firms to start-ups, showcasing the variety and resilience of businesses in the city. Learn more.
- Passionate Entrepreneurship: The city’s foundation of passionate entrepreneurship is highlighted by a variety of independent businesses that have thrived despite recent challenges, such as the effects of Covid-19. Liverpool’s local businesses have been supported by the community, strengthening the city’s economy and cultural fabric.Discover some of these businesses.
- Promotional Support: A directory that provides free promotion for small businesses to people in the area is evidence of Liverpool’s commitment to fostering growth. This has allowed many small local businesses to be part of Liverpool’s broader success narrative. Check out these businesses.
- Global Citizens: Beyond local impact, Liverpool’s small businesses also operate as global citizens, with some being applauded for their sustainable practices and contributions to global objectives. Read about Liverpool’s sustainable business champions.
The vitality of the small business scene in Liverpool is further underscored by a startup culture that can potentially give the city an edge over its northern rivals, owing to a burgeoning sense of ‘Liverpolitanism’ and a commitment to high-quality, independent services.
Challenges for Small Businesses
In Liverpool, small businesses encounter specific challenges that can impact their growth and sustainability. The local market’s competitive landscape and evolving regulatory framework present two primary obstacles.
Competition Analysis
In Liverpool, the competition for small businesses can be intense, with entrepreneurs identifying recruitment and business support as significant barriers to growth. High-traffic areas such as Liverpool One inject a mix of large retailers and restaurants into the marketplace, posing a threat to smaller, independent shops.
The competition extends to drawing businesses into the city centre, where commercial space is at a premium.
Regulatory Hurdles
Small businesses in Liverpool must navigate regulatory hurdles that include zoning laws, health and safety standards, and employment regulations. The complexity of these regulations can be daunting, particularly for start-up ventures that are yet to establish a footing in the business community.
Compliance with such standards requires resources that may be scarce for small businesses, particularly those starting new ventures, contrasting with the lower survival rates experienced in other UK regions.
Quality of Life
In Liverpool, the quality of life is a considerable advantage for small business owners and their teams. The city offers comprehensive healthcare services and various educational and training opportunities, all of which contribute to a supportive living and working environment.
Healthcare Services
Liverpool has a robust healthcare infrastructure, with the NHS providing extensive services and several private healthcare options. Hospitals like the Royal Liverpool University Hospital offer a wide range of care from general to specialist treatment.
The city is also home to the Liverpool Women’s NHS Foundation Trust, which is the biggest hospital in Europe specialised in women’s health.
Education and Training
Liverpool boasts a number of highly-regarded educational institutions, such as the University of Liverpool and Liverpool John Moores University, offering a diverse array of undergraduate and postgraduate courses.
Training opportunities are abundant, with vocational courses and corporate training programmes readily available, aiding in the continuous professional development of the workforce.
Future Outlook for Small Businesses in Liverpool
Liverpool has demonstrated a robust infrastructure for small businesses, fostering a positive outlook for growth and sustainability. The city’s initiatives showcase a commitment to nurturing a healthy business environment.
Small businesses in Liverpool can benefit from tailored programmes such as the Good Small Business Programme, which offers future-proofing advice in collaboration with The Good Business Festival and Growth Platform.
- Confidence in Profitability
- Surveys suggest there is a positive sentiment among small businesses regarding their future profitability and turnover. With over 60% showing a positive outlook for the coming year (Liverpool Chamber of Commerce).
- Inflation Concerns
- Manufacturing businesses in the region express concerns about inflation. However, the level of resilience in the sector indicates strategies are in place to manage such economic pressures.
- Supportive Programmes
- The city provides support through events like The Good Business Festival, encouraging entrepreneurial advancement by presenting success stories of purpose-led businesses.
- Sustainable Development Goals
- Liverpool businesses are aligning with global sustainability aims, contributing to a forward-thinking business ethos that can attract consumers looking to engage with socially responsible companies.
In conclusion, the collective efforts of the business community, coupled with focused support from business festivals and governmental programmes, present a favourable future for small businesses in Liverpool.
They are well-positioned to thrive in an environment that values innovation, sustainability, and growth, amidst the prevailing economic challenges.
