Lucy Hunt explains why Cornwall’s business landscape is changing.

The number of business start-ups in Cornwall is growing faster than the UK average and the county has a higher business survival rate than any other region in the country.

Australian Wayne Deakin has worked on branding and design projects all over the world, so when he set up Seed Brand Communications with design professionals from across the UK, the location for the business was up for grabs. 

“I have some Cornish heritage so we decided to see how feasible Cornwall was. Three of us are also surfers, so the prospect of being close to the sea was very appealing,” he explains.

Seed Brand is just one of the growing numbers of new businesses that has chosen to set-up in Cornwall.

A warm climate and the opportunity to go surfing after work might be good psychological reasons to start or move a firm to the county.

Compelling financial reasons 

Considerable changes in Cornwall’s infrastructure and business support network, however, mean that there are now compelling financial reasons for entrepreneurs to head south west.

Over the past six years, locally-matched Objective One European funding of £350 million has been instrumental in boosting the infrastructure in Cornwall and making the county more competitive and attractive. 

Newquay Airport continues to grow and now provides Cornwall with a fast link to London as well as other major UK and European cities.

Investment has also resulted in 99 per cent of the county having broadband access, with take up among businesses and households at leading levels for a rural location. 

There has also been a boost to Cornwall’s education and research and development capabilities.

Long-term strategy 

In 2001 the Combined Universities of Cornwall – a partnership between nine higher education institutions – was established not only to provide a wide range of education choices across the county, but also to offer commercial opportunities to businesses through technology transfer.

This economic injection is not just a quick fix.  Cornwall has a long-term strategy to develop its economy by attracting small to medium sized businesses that will subsequently provide job opportunities for the local population. 

From January 2008, a further £445 million of European funding is being be invested in the county over the next six years to further transform Cornwall’s economy.

Will this investment translate into business success? Most definitely, according to Government figures, where the impact of recent investment can already be seen.

Data from the Office of National Statistics shows that, while the UK average number of new business start-ups per 10,000 population has declined by 2.5 per cent over the past three years, Cornwall’s new business trend is moving in the opposite direction and grew by almost nine per cent between 2005 and 2006. 

Right kind of mental attitude 

What’s more, the county boasts a higher business survival rate than any other region, with three quarters of new businesses still trading after three years – ten per cent higher than the rate in London.

It is all well and good providing entrepreneurs with the foundations for growth but you also need to foster the right kind of mental attitude – and these figures are testament to the entrepreneurial spirit which flourishes in Cornwall.

One such entrepreneurial business is an internet marketing firm called Niddocks, run by husband and wife team Rob and Andrea Edlin.

Rob had worked in IT for many years but had always wanted to be his own boss. 

A few years ago he identified an opportunity to develop a company which could provide business with the skills and technology to best market themselves online.

In 2003, Rob and Andrea launched Niddocks in Nottinghamshire and Rob’s vision started to pay dividends with the company seeing rapid growth.

“We were delighted that the business got off the ground so quickly,” explains Andrea. “We had always dreamed, however, of living and working nearer the sea.”

They took regular holidays in Cornwall and are both keen divers. During one of these holidays, a diving instructor asked what was stopping them from moving. 

“It was one of those comments which really got us thinking seriously about whether we could run the business from Cornwall.  We realised quickly that it would be very feasible,” they say.

Rob adds that moving to Cornwall has been even better than they could have imagined.

“The people have been incredibly welcoming and we have already teamed up with local business suppliers in the same field, enabling us to provide clients with a wider service offering,” he concludes.

Financial commitment 

Niddocks is not alone in relocating to the county and, in fact, it is becoming a fast developing trend as more and more businesses see the benefits. 

Cornwall Pure Business, which helps firms that are interested in moving to Cornwall, relocated more businesses during 2007 than the previous three years combined.

Since 2004, the project has assisted over 100 businesses with their relocation resulting in the generation of over 600 jobs.

While tourism remains an extremely important part of the county’s economy, an increasing number of innovative, creative and entrepreneurial businesses are making a long-term financial commitment to Cornwall.

Lucy Hunt is the Inward Investment Manager for Cornwall Pure Business.

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