A growing and prosperous economy
Performance reflections
Our number of start-ups decreased slightly from 1,590 businesses newly created in 2023, to 1,530 in 2024. In some cases, it will likely be due to a lower number of people wishing to start a business or in some cases people wishing to start businesses not reaching the stage of launching.
There has also been a reduction in the amount of public funding being directed at start-up support (1-to-1 coaching and workshops) in recent years with a higher reliance on self-help information via digital platforms such as the National Business Support website – although we have consistently commissioned a start-up support service initially through its ERDF funded CW Business Support Programme and latterly the UKSPF (Shared Prosperity Fund)-funded Business Growth WM in Coventry service.
We offer support to firms through our Business Growth WM delivered through an integrated model of non-financial support and grants (engaged with 531 Coventry businesses in 2024 to 2025) and CW Growth Hub's Account Managers. These also included the ERDF funded CW Business Support, Innovation and Green Business Programmes that were led by us and then the UKSPF-funded Business Growth in Coventry service, all entailing a mix of 1-to-1 non-financial business support and grants.
We have seen a reduction in the number of businesses closing from a relatively high 1,885 in 2023 to 1,370. With more businesses opening than closing in 2024, this shows a growing small and medium enterprise ecosystem.
Of the 1,590 new enterprises created in 2023, 1,420 survived into 2024 - a 1-year survival rate of 89.3%; up from a rate of 88.4% the year before. The fall in business closures and an increase in the 1-year survival rate is a positive indication of business resilience with more businesses adjusting rapidly to an uncertain economic climate, with increasing costs of doing business and lower market confidence being factors. This also reflects the increasing strength of the local business support ecosystem complemented by the robust support offered by our teams to improve their resilience.
Growth in the Coventry economy is measured using a local measure of ‘Gross Domestic Product (GDP)’ - the value created by locally based businesses, estimated to total £12.9 billion in the most recent data, for 2023; £35,719 per head when divided by Coventry’s total population. The most recent data is lagged, for 2023, the Office for National Statistics' update for this year’s report was delayed.
Trends of GDP per head in the city have generally been worse than the national average since COVID-19 lockdowns ended in 2021. Macroeconomic factors will have influenced this trend. The region has been impacted by the rising costs of doing business and continued international trade challenges. Whilst local business support programmes and the work of CW Growth Hub's Account Managers supported a high number of local businesses to grow during that period, there is a need for carefully targeted business support to tackle barriers to growth and productivity if levels of economic output per head are to increase and Coventry's performance is to more closely mirror the national average.
Investment income for Coventry City Council amounted to £5m in 2025 to 2026, exceeding the target, driven by interest rates remaining higher than anticipated.
Actions taken in year
Coventry City Council has contributed to a review of economic functions in the region undertaken by West Midlands Combined Authority (WMCA). A new business support model will be rolled out from April 2026, led by a new regional Economic Delivery Vehicle within WM Growth Company that will be focused strongly on providing more intensive support to businesses with highest growth potential, with Local Authorities responsible for supporting other types of businesses.
This will play a key role in safeguarding and enhancing the resilience of Coventry businesses. This includes the new High Growth Service to be delivered through WM Growth Company, and the new Local Enterprise Support Service being delivered through the Local Authority, where we will deliver tailored support to tackle the barriers to growth, innovation and productivity improvements faced by local businesses.
With the Integrated Settlement funding more focused in this direction, the level of resources being made available for intensive support to new business start-ups has decreased. The Authority expects to still take enquiries from individuals wishing to start a business and will be working with WM Growth Company to enhance the Business Growth WM website to ensure it has the highest possible quality self-help information and interface with the national Business Support service. We will also need to refer new enterprises to local partners that will still deliver more intensive support services in this space, including the Highlife Centre and Coventry and Warwick Universities.
The Start Up support activities delivered by CW Chamber through the CW Business Support programme and the early activities of Business Growth WM in Coventry (launched in September 2023) will have contributed to improving the number of start ups and their survival rate.
Business support programmes have supported growth and new businesses in Coventry - notably the ERDF funded CW Business Support, Innovation and Green Business Programmes and latterly the UKSPF-funded Business Growth in Coventry service, all entailing a mix of 1-to-1 non financial business support and grants.
Although the data has a time lag, we would expect that the new regional business support offer, delivered to act on the recommendations of the Economic Functions Review, to have a notable impact on improving economic output and business productivity. The new High Growth Service through WM Growth Company will provide more intensive support to firms with high growth potential and we would expect this support to result in new business practice, improved leadership & management, and accelerated innovations, which will likely lead to more rapid increases in business turnover and significant economic output generated. Our new Local Enterprise Support Service will also be more tailored to addressing the bespoke needs of individual businesses, and we will deliver more in-depth support to those firms.
Investments are managed as per our treasury strategy although external factors such as interest rates are outside of our control.