Tech sector is the UK’s strongest-growing area, KPMG report estimates
The scale of Britain’s technology enterprise has been revealed in a new study that has found the number of tech-related enterprises in the UK private sector has risen by 31 percent since 2010.
The figures from the latest KPMG/Markit Tech Monitor UK Survey say that this represents a net gain of approximately 45,000 enterprises starting up since 2010, equivalent to a new company setting up every hour of the day for the past five years.
KPMG’s findings also show that the growth of technology businesses is double that of all private sector enterprises over the same period (16 percent).
The M4 corridor proved to be the most popular region for new businesses, with three of the top five clusters based in the area.
Reading was the top spot of all tech clusters in the UK, as more than one in five enterprises in the area were registered as being from the tech sector firms (22 percent), a significantly higher proportion than the national average (eight percent).
Wokingham (21 percent) and Slough (19 percent) were close behind, with Hounslow (18 percent) and Milton Keynes (17 percent) rounding out the top five.
“It is important for the UK to have a strong Tech sector and it is therefore hugely encouraging to see that not only has the UK Tech sector delivered six years of continued growth, but that this has happened throughout the country with some 63 local authorities experiencing double digit growth in the last year alone,” said Tudor Aw, partner and head of KPMG’s technology sector.
“Although we have seen the number of Tech enterprises grow by a third since 2010, double that of other private enterprises, we can’t take this for granted and it is important we see the Tech Sector be prioritised by national and local government and also focus on key issues such as STEM subject education, investment in regional infrastructure including broadband and an adequate regulatory framework.”
Back in October, data from London & Partners, which acts on behalf of the Mayor of London regarding investment and expansion, also revealed the scale of interest in the capital’s technology firms, revealing that they had collectively received £1bn in funding, including £320m in venture capital investment over a three-month period.
This investment marked nearly three-quarters of the UK total of £1.4bn, making 2015 the most successful year yet in terms of investment, eclipsing last year’s figure of £1.3bn, and coming in at more than ten times greater than 2010’s figure.
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