Southampton, situated on the South East coast in Hampshire is a city famous for their liner port. The Titanic famously set sail from this very port in 1912. Today, it is regarded as the cruise capital of Europe. It also ranks among Europe’s top five tech superclusters. For scaleups eyeing expansion into the UK, discover what Southampton has to offer.
Economic Vibrancy
Southampton’s economic landscape is strong, with a population of 248,900 (2021) [1] and a GVA per head of £39,665 (2022) [2]. The city is famous for the following sectors: technology, maritime, medical, financial and professional services. [3]
In a report carried out by CBRE (2019), Southampton was ranked among Europe’s top five tech superclusters. During 2017, Southampton’s digital tech businesses generated a turnover of £2.1 billion.
Southampton’s maritime sector is integral to its economy, contributing £2.5 billion annually and operating globally. The launch of the Solent Freeport generated significant investment in the area and created thousands of jobs, reinforcing the UK’s ambition to be a global maritime leader. Southampton is also a key player in the financial and professional services sectors with well-known financial providers based here.
Strategic Infrastructure Investment
A 69-minute train ride to London is available from Southampton, as are three motorways: the M3, the M27, and the M271. A total of two million passengers pass through the Port of Southampton every year, making it the largest cruise port in the UK. Additionally, it is the greenest cruise terminal in the UK. The city also benefits from an airport, flying to nearly 20 destinations.
Through the Transforming Cities Fund (TCF), the Department for Transport awarded £57 million to the Southampton City Region. Funds were used to improve cycleways, footpaths, and road crossings. [4]
Southampton City Council has ambitious regeneration plans including a scheme for the central business district and surrounding Southampton Central railway station. Southampton’s waterfront will also benefit from a multi-million pound flood alleviation scheme along the River Itchen, enabling further development opportunities.
Southampton is one of 20 UK cities with accelerated housing growth targets, with a forecast to deliver over 26,000 new homes by 2040.
Education and Innovation
Home to two leading universities with approx 46,000 students. Southampton University is a founding member of the Russell Group. This means they are a research-intensive university. They are also a founding partner of SETsquared, the university business incubator. Specialisms at this university include marine and earth sciences, civil and structural engineering and mechanical, aeronautical and manufacturing engineering.
Solent University specialises in business, creative, sport, and marine studies.
Championing Sustainability
Southampton City Council is committed to achieve net zero emissions by 2030. Initiatives such as the Green City Plan 2030 aim to create a greener and healthier city.
Low carbon across the South East (LoCASE) helps local businesses to optimise energy efficiencies and develop low carbon innovations and solutions. Grants are available to support SMEs.
Look out for Future South and Green Tech South who help businesses transform their innovative, low carbon ideas into commercial products and services.
Innovation Hub for Entrepreneurs
Future Worlds, the University of Southampton’s incubator connects entrepreneurs with mentors and investors, helping to bring groundbreaking ideas to market.
The Southampton Science Park supports hundreds of start-ups. Additionally, Ocean Village Innovation Centre is another key business hub in the city.
Support for Local Businesses
Business and IP Centre (BIPC) Southampton is an enterprise hub to help entrepreneurs to start or grow their business. It was formed in partnership with Southampton City Council and The British Library in 2022. You can access market research and IP information. They also organise networking events.
DNAsix is an enterprise support programme designed to help a range of organisations thrive and compete in today’s digital world. Support includes life planning, financial literacy, business strategy, marketing, content creation and data.
Solent Local Enterprise Partnership provides funding and business support to businesses in the area. They offer support on international trade, green and sustainability initiatives, funding, as well as business growth advice and support.
Growth Maturity Index GPC Skills Ltd and YTKO Ltd teamed up to create a business engagement and diagnostic tool called the Growth Maturity Index. Southampton City Council provides local businesses with free access to this tool. It focuses on four interlinked functions which drive growth across all businesses: Strategy, Markets, Money and People.
Setsquared Southampton is located in Southampton Science Park. It serves as a hub for entrepreneurial innovation. It’s a part of the SETsquared enterprise partnership, which includes Bath, Bristol, Cardiff, Exeter, Southampton, and Surrey universities. They are recognised as one of the world’s top business incubator managed by a university.
Success Stories
Aquark Technologies is a spin-out company from the University of Southampton. As a leader in quantum technology innovation, they provide miniaturisation and portability solutions. They aim to bridge the gap between laboratory research and real-world applications through their expertise in vacuum technology, microfabrication and laser system development.
Ordnance Survey (OS) produces, maintains and distributes detailed location information for Great Britain. They record and manage 500 million geospatial features in the National Geographic Database.
Starling Bank Anne Boden envisioned a different kind of bank when she conceived Starling Bank in 2014. They are a bank who embraced technological changes and continue to innovate in the world of digital banking with 4 million account holders.
Why Choose Southampton?
Southampton’s excellent transport links, economic strength, and business support ecosystem make it an ideal destination for scaleups. Recognised as one of the top UK spots for tech, maritime and financial and professional services based businesses. If you play in these spaces, definitely consider Southampton.
References:
[1] https://www.ons.gov.uk/visualisations/censusareachanges/E06000045/
[2] https://data.southampton.gov.uk/economy/economic-assessment/
[3] https://www.southampton.gov.uk/grow/invest/why-southampton/key-sectors/
[4] https://businesshampshire.co.uk/land-property/development/city-centre-southampton/
