Is the future bright enough for the Central South?
In the first of a series of articles from accountants and business advisors, BDO LLP, regional managing partner Steve Le Bas asks: Is the future bright enough for the Central South?
There’s a real sense of optimism around the Central South right now. Positioned as the UK’s global gateway, there’s been a concerted effort by organisations and partnerships, such as The Solent Cluster, Solent Partners, Business South and the local LEPs, to capture and promote what makes the Central South a unique place to do business.
With an enviable coastal location, proximity to London, and unrivalled connectivity, we’ve already achieved so much. The region has produced five unicorn businesses since 1998 and can boast one of the UK’s largest listings on the US stock market in recent years.
There are centres of excellence across the Central South and by taking these building blocks and putting them together, before you know it, you have something far greater than the sum of its parts. The case for collaboration is strong. We’ve seen other regions in the UK embrace this model to create geographical powerhouses and sector clusters, which has made them more attractive for inward investment, created jobs and fuelled economic growth.
The fact that an increasing number of people refer to the Central South – in and outside the region – is a significant step forward, but there’s still a way to go in defining our identity and exact reach. The number one priority needs to be establishing a cohesive vision and driving force to create enough momentum so our leaders, partnerships and businesses can all work together to succeed.
Investment in talent
According to BDO’s bi-monthly Economic Engine survey of 500 mid-sized businesses, which looks at the challenges and opportunities facing UK companies with a turnover between £10m-£300m, 29% of businesses in the Central South shared the biggest challenge facing their business over the next six months is recruitment.
Access to talent is proving a barrier to growth in terms of attracting specific skillsets and the number of people they need to hire. We are, however, in the fortunate position of being home to six high-quality universities in the Central South region, so we’ve got some real good talent coming through. The region is a fantastic place to live and work so with the right strategy, we have the potential to retain and attract the top talent needed to power the businesses looking to expand here.
There are also some interesting upskilling initiatives locally like Solent Partners’ Solent Skills Bootcamps which are giving employers and the self-employed the opportunity to retrain, upskill, and fill vacancies. Targeted at adults aged 19 and over, the aim is to provide participants with flexible training around new skills to help develop their career.
Investment in place
I started by saying how well connected we are, but there’s work to be done to improve digital connectivity and technology capabilities. To thrive in future, we’ll need to keep pace with technological change, and we’d hope to see investment in improving internet connectivity on trains between our cities and the rest of the UK.
We’ve had some tremendous investment into regeneration projects in the region across areas such as Christchurch, Portsmouth and Poole, but this will need to be an ongoing commitment from local and central government working together so the region can reach its full potential. As I write this, we don’t know the outcome of the general election or future for local leadership, but we may see more devolution to help deliver the future vision.
In my role, I see how our teams at BDO and the wider business community are all so personally invested in the Central South so there’s no lack of drive or willingness to see the region grow and develop. It’s such a good place to do business with plenty of opportunities, which is why we’ve made a long-term commitment to BDO’s presence in the region with the investment into our offices in Southampton. We will also continue to invest in our people in the Central South because they are crucial to the future success of our business. In turn, this means businesses looking to access new markets and grow can access the specialist expertise in our local teams and global network to support their ambitions.
It is our combined ambition and success that will be key to boosting the Central South’s wider economic prospects too. We’ve achieved so much as a region without this to date – imagine how bright the future could be if we put individual agendas aside and create a real powerhouse in terms of investment and profile.
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Irene Graham, CEO at the ScaleUp Institute, looks to the future for high-growth businesses in the Central South.
The ScaleUp Institute was established to ensure the UK is not only a good place to start a business but to scale a business and for the past ten years has been tracking what businesses need to accelerate growth.
The Central South is home to 1,675 scaleups growing at 20% or more each year, providing 160,000 jobs and generating combined sales of £27 billion. There’s a good mix of sectors in this growth stage in the region from retail & wholesale, and professional services, as well as a growing number in science, tech and industrials.
Seven in ten businesses in the region tell us they are looking for better access to markets. To meet this demand, enhanced collaboration between government, corporations, and universities/business schools with the local scaleup community is essential. Building physical clusters and hubs that encompass these entities, fostering greater connectivity, will help investment flow, enhance talent development and provide access to research and development opportunities. This approach will also help to build a distinct identity for the regional scaleup ecosystem.
Central South business owners are hungry to grow with 80% telling us they want to export and expand in international markets so would benefit from more dedicated trade missions and proactive relationship management to support international trade and help them identify customers overseas.
We’re upbeat about the future for scaleups in the Central South. There’s so much potential for more growth and this can’t be achieved by any one alone. If the region establishes a strong overall vision and a brand for scaleup services within the Central South, greater collaboration will make the region a key player in making the UK the best place in the world to scale up a business.
As a lead partner to the ScaleUp Institute, BDO is working alongside the London Stock Exchange, BGF, British Business Bank, Innovate UK and others supporting the ScaleUp Britain campaign to drive the growth agenda.
