Despite the ongoing difficulties that businesses across the UK are facing, many companies are still navigating the challenging landscape with positive results. According to recent studies, businesses in Bristol, Bradford and Northampton had an impressive closure rate of 0.45% to 0.55% between 2017 and 2022 – putting them in the top ten list of most successful cities for businesses.
Also on that list is Edinburgh, which sits at number five. According to analytical research, as many as 17,372 businesses opened in December 2017, with only a further 71 closures taking place over the next five years. This puts the closure rate at 0.41%, which is a positive feat in comparison to cities like Southampton, which has a closure rate of 3.04%.
Edinburgh Business Continues To Grow
Edinburgh has long been known as an enterprising city for business leaders, and it is a good sign that this has not changed despite the struggle of the last three years. With that being said, as Edinburgh garners more positive publicity, more and more businesses will be looking to locate their headquarters in the constituency.
In 2018 alone, the city surpassed 50,000 companies – 22,000 in the city centre, 4,323 in Leith and 4,965 on Leith Walk – and this could potentially be a concerning factor when it comes to competition for startups.
An Elevated Need For Effective Marketing
Competition is often healthy in business, but with buyers becoming more conscious of their money and reluctant to look outside essentials, competition with more established companies can be more of a challenge. This is especially true for b2b startups. It has been proven that strong b2b communication can strengthen the loyalty between customer and client, which means potential clientele will have already formed a relationship with another vendor.
In this way – when it comes to Edinburgh business – it is even more important for startups to elevate their communication to match and even surpass their competition while ensuring they investigate the market to understand a differential point.
Valuing The Customer
A lot of success from a b2b standpoint comes from customer retention rather than acquisition, meaning those first few customers must also be cherished and supported by a solid loyalty program. If this is further built upon – through effective marketing and outstanding communication – then more clients will undoubtedly join the fray and invest in the company.
This can also be said of b2c companies in Edinburgh. Approximately 90% of b2b and b2c companies have some type of loyalty program, with the customers engaged spending up to 18% more each year.
Room For Success
Although there is a constant influx of businesses relocating to Edinburgh, that doesn’t mean that startups should be concerned. If anything, recent studies show that there is certainly room for success in Edinburgh, but only if the correct steps are taken in differentiating a business and learning to value the customer.
Hopefully, over the next few years, Edinburgh will continue to be a powerhouse in the UK business landscape, encouraging more companies to utilise the scene and get their business moving.
