Plymouth leads Devon in new business formations

According to recent data from the Inform Direct Review of Company Formations, sourced from Companies House and the Office for National Statistics, Plymouth saw the highest number of new business formations in Devon in 2024, with 1,447 new companies registered. Exeter followed closely with 1,128 new businesses, while Teignbridge recorded 735.

The Moorlander sought to understand what this surge in business creation means for the local economy.

By the end of 2024, Plymouth had a total of 11,473 companies operating in the city, bolstered by the 1,447 new additions that year. 

In contrast, the South Hams ranked at the bottom of the list, with 5,571 businesses at the year's end, including 534 newly formed enterprises.

To explore the reasons behind Plymouth’s business growth, The Moorlander spoke with Stuart Elford, CEO of the Devon and Plymouth Chamber. 

The Chamber, a not-for-profit organisation, supports business development across the region and is the largest business network in the South West.

Mr Elford explained: “I think we have to put those figures against the context of the size of the general population and business stock, so they may not be as imbalanced as they first appear.

“That said, Plymouth has a number of really positive supporting factors, including three universities, a very pro-business and supportive City Council, and of course a proactive Chamber of Commerce. (Members of our Chamber are 3.5 times more likely to survive and thrive in business than non-members, according to ONS statistics.)”

Tim Jones, Chairman of the South West Business Council, also weighed in on Plymouth’s performance, expressing cautious optimism about the record number of company formations in 2024.

“This is not just a fluke year,” he said. 

“The momentum has been building up with some extremely business-friendly initiatives rolled out by our local authorities and business support organisations. The low point of Covid sent a huge shockwave through our economy. Survival has slowly been replaced by increasing optimism. We are now seeing the results of a lot of hard work. Businesses themselves need a pat on the back for adopting a ‘can-do’ attitude.

“The South West already had a terrier-like approach to adversity. We experienced this during the foot-and-mouth crisis and then the financial crash in 2008. Our businesses are nimble and responsive to market changes. Unlike some regions in the UK that have a supertanker mentality, we have always been at the forefront of recovery.

“Despite the current caution surrounding future economic challenges, I anticipate this growth trend continuing through 2025. The next challenge is not government policy, interest rates, or inflation. It is how we can take a lead in the digital and AI revolution and create wealth from our huge natural capital assets.”

With business confidence growing and new enterprises continuing to emerge, Plymouth appears poised to strengthen its role as a key economic hub in the South West.