Yorkshire is losing the businesses it can least afford to lose - Conrad Ford
Established businesses are the backbone of Yorkshire's economy. Employing between 5 and 249 people, they account for 34 per cent of private sector employment across Yorkshire and the Humber. Yet their numbers have fallen by almost 3 per cent since 2023.
That's a worrying trend for a region with ambitions to grow its economy. Established businesses are among Yorkshire's most important sources of jobs, investment and opportunity.
When we talk about driving economic growth, the conversation too often focuses on attracting the next big investment or creating the next high-growth start-up. Both matter. But we risk overlooking the established businesses already employing people, investing and creating opportunities in our communities.
Just look at the likes of Wetherby’s raw dog food producer Naturaw, which recently secured funding to triple its production capacity. Or Fremington’s cycling and leisure destination Dales Bike Centre, which got investment to expand its offering to include luxury glamping pods.
These are more than just statistics. They're businesses providing skilled jobs and apprenticeships, buying from local suppliers and bringing in investment. Not to mention, they’re an important part of that community’s identity.
Established businesses like this need to be backed. But Allica Bank's Good Growth Icons research suggests all too often they are being overlooked. Over the last three years, the number of established SMEs in Yorkshire has fallen by 2.9 per cent – that’s far worse than the national average of 0.7 per cent.
Some parts of Yorkshire have been hit particularly hard. Sheffield has lost 6.2 per cent of its established SMEs since 2023 while Hull has seen a 5.3 per cent decline, Calderdale 5.1 per cent and North Yorkshire 4.5 per cent. London, on the other hand, saw an increase of 5 per cent in its established SME population in the same period.
A decline like this matters far beyond the businesses themselves. It risks fewer opportunities for employees and their families, less investment in local communities and a weaker regional economy.
It’s especially concerning for Yorkshire’s rural communities. Across the UK, established businesses account for 48 per cent of employment in rural areas. These businesses often take years to build, nurture and grow. Without the right support, they can disappear very quickly.
With a new Prime Minister focused on localism and delivering ‘good growth in every postcode’, established businesses have to sit at the heart of that plan.
It means recognising that established businesses face different challenges from start-ups and large corporations, and designing policies around their needs.
With the UK continuing to lag other G7 economies on business investment, improving access to growth finance should be a priority. We also need to look at tax incentives that give business owners more room to reinvest in their companies.
Supporting established businesses also means giving local leaders more power to address the challenges businesses in their communities actually face.
That means bringing business owners, councils, educators and banks together to identify what's holding back growth and work out how to address it.
Yorkshire doesn't lack ambitious businesses. But it cannot build a stronger economy if the number of businesses at its heart continues to decline.
Conrad Ford is chief product and strategy officer at Allica Bank.