ABERDEEN was the only city to create more companies than it lost as the UK came out of recession in 2010, according to new analysis published today.
The Granite City’s status as the oil capital of Europe, coupled with its strong food and drink sector, meant 3.7 businesses per 10,000 people were set up, compared with a UK average for ten firms closing per 10,000 people.
The figures – compiled by accountancy group UHY Hacker Young and based on data from the Office for National Statistics – showed Edinburgh was ranked second in the league table of 50 cities, after losing just 2.4 firms per 10,000 people.
Dundee came in 12th position, with Glasgow finishing in 27th place, one spot ahead of London.
Ian Williams, head of accountancy firm Campbell Dallas in Aberdeen and chairman of UHY’s global energy special interest group, said: “While the economies of other cities suffered as a result of the recession, Aberdeen was able to buck the national trend by continuing to create more businesses than it lost.
He said that London, normally the powerhouse of the UK economy, had been held back by its reliance on the financial sector.
Williams added: “Aberdeen’s strength is its global mindset. There is a distinct market shift from oil and gas exploration towards technical services. Aberdeen businesses tend to be export-led with a growing confidence to tackle emerging oil and gas economies. And it’s not just oil. Aberdeen is an unchallenged market leader in renewable energy and food and drink.”
The business formation rate across the UK was stable between 2009 and 2010, but the number of companies going bust rose by 7 per cent.
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