The Startup Britain campaign have released some new stats about how many companies were started in the UK in 2013. They have analysed data from Companies House and have produced a nice infographic.
The headline figure for Birmingham is that 16,281 business started up. Impressive. However, that’s actually a figure for the B postcode rather than for the Birmingham local authority area. Given that Startup Britain have also released the data they used I though it worth a quick analysis.
In postcodes that are wholly or partly within the Birmingham local authority area there were 11,248 start-ups.
B postcodes in Sandwell produced 1200 start-ups.
Solihull had 947 start-ups.
The top three performing postcodes in Birmingham are Birmingham City Centre (B2), Edgbaston/Lee Bank (B15), Winson Green/Hockley (B18).
The fourth and fifth best performing postcodes are within the city centre (B3, B1).
Castle Vale had the lowest number of start-ups (35, 0.3%) .
Digbeth (B5) had 268 start-ups, 2.3% of the total (13th in Birmingham).
I’ll avoid cross-posting in future but my first posting at the Digital Birmingham blog is about a useful example of how social media can be used by small businesses:
I’m always looking for examples of how social media can support small businesses. I’ve raised the question before using the local builder as an example. Why on earth would the bloke who knocked a hole in my wall have a reason to use any kind of social media tool?
Well I found a partial answer to that in a video from Herefordshire firm, Wiggly Wigglers (amongst other things they sell worms for composting). Founder Heather Gorringe explains how a shift to social media over tradititional media helped cut her advertising costs without cutting her customer base.
What’s clear is that Heather knows her customer extremely well: “we sell stuff that gardeners may not know they want”. Of course Heather’s firm have had an e-commerce presence for quite a while but they’ve embraced social media in a big way.
She has a blog, a facebook group, uses podcasts and is all over Youtube. I can’t help wonder why Wiggly Wigglers aren’t on twitter (there’s certainly plently of chat about them). Social Media is ideal for building a community around your products, for ensuring customers value the advice you give them and the knowledge-sharing that comes from connecting to each other. Increasing value-added rather than cutting prices sounds like a good strategy in an economic downturn. Previously Wiggly Wigglers had bought in customer lists, now in effect they create their own customer lists for free through word-of-mouth on social media.
For her efforts Heather has won a global award for Small Business Excellence – that’s right, a worm seller from Hereford beat off international competition. Well done to her. We need more local and regional social media champions from the wider business community. Here in Birmingham I think we’re certainly adept at knowing how to make a buck by playing the local card – but maybe we could take tip or two from a rural worm-grower about how to build a global community who care enough to come back again and again.
This is part crowdsourcing, part just setting my stall out.
One of the aspects of my new job that I’m wrestling with is the notion that no matter what kind of business you are you need to have an online presence. In Digital Birmingham we have a target for increasing the amount of businesses trading online but ‘trading’ needn’t necessarily imply buying or selling online. It might mean getting customers interested enough to talk to you about a contract over a rival. It might mean increasing your business contacts by using any number of social media networking tools. It might simply mean getting yourself listed in online directories enough times so that you come up high in google when a new customer is fishing around.
But how do you develop a strategy to get Birmingham businesses online? Here’s my take on it as a series of questions that I’d welcome responses on:
What are we measuring? Pete Ashton has a specific target in mind for Custard Factory clients. He wants 50% of them blogging by next year and at the moment 18 of them are. Anything with content that can be subscribed to counts. So Pete has a baseline to work on, it’s measurable and specific. What’s the appropriate measure for the city as a whole? There are some EU benchmarks which are worth considering and tell us lots about the national picture for e-commerce (UK is 2nd in the EU for enterprises selling goods online) but they only cover part of the story.
So my first question is really: What’s the measurable? Is it an E-commerce one or a ‘subscribable content’ one or something else?
Why should Dean the Builder care? Dean is knocking a hole in the wall of my living room on Friday (it’s okay, I asked him to). He comes recommended by a neighbour. But Dean is just a phone number and a cheery smile – he’s legit and everything but works alone or in a small team and picks up work based on personal contacts. He’s got tons of work so what’s being online got to do with Dean? There’s plenty of places you can see a generic rationale for getting businesses online but little tailored to specific sectors. Dean is reasonably priced, in fact I think I’m getting a bargain for the work he’s doing. He doesn’t need to advertise for more work but I wonder if there’s a place online where he could pitch for higher value work? Same effort, more reward should maybe be his goal.
So the real question here is: Do we need a sector-specific approach or a wider there’s-something-for-everyone approach?
How do we make change happen?
I like the Social Media Surgery approach. Get some keen people in a room and give away your knowledge for the greater good. Is that scaleable across the city? Seems a tough task if it is. Are there enough online experts to go around? Perhaps instead there’s a staged approach to take. Business leaders could start to use the tools themselves and hope that others follow. Perhaps identify and support a specific business on its digital media journey (no I’m not asking Dean, he’s got a hole to create). I’m unsure a ‘let’s-do-workshops’ approach will work at this scale. It’s a ‘heart-and-minds’ thing isn’t it?
So: what are the specific actions we need to take? On the ground working with businesses or a big fat PR campaign?
Who’s on board? Which businesses in the city are already doing this stuff? The media/creative industries ones certainly are and they should really be demonstrating to others the benefits of working online. I suspect the business sector as a whole is still very firmly of the belief that websites are brochures. At best they can show off stock. Perhaps you might sell stuff through it. But online as a way to build customer networks, social media as a tool to position yourself as the supplier of choice, as a way to continue the conversation started at the golf course – that thinking seems a way off yet. But there are useful corporate examples out there and maybe a public/private coalition could help drive this forward.
Which brings me to: Who is the ‘we’ that need to make change happen? Digital Birmingham + Chamber of Commerce? + Universities? + Tech firms? + a network of leading bloggers/social media types?