Exciting Cities: Southampton
Southampton’s strength is built on its maritime connections, and its new generation of businesses are sailing full speed ahead for success. Southampton has long relied on the sea for success, as a naval port, ferry terminal and stepping-off point for the yachting haven of the Isle of Wight. From Marchwood to Westquay, its coastal heritage runs deep. “Southampton’s relationship with the sea is long and prosperous,” says Peter Birkett, CEO of University of Southampton Science Park. “The cruise capital of northern Europe, the Port of Southampton is also Europe’s most productive, the UK’s second largest container terminal and the leading port for automotive trade.” But there’s more to the city than its coastal connections. With more than 7,400 businesses based there – including Cunard, P&O, Ordnance Survey, Garmin and B&Q – Southampton makes a major contribution to the British economy. “It’s also a city of innovation, designated as a UK Genomic Medicine Centre and ranking in the world’s top four oceanographic research institutions,” says Birkett. That innovative spirit extends to its start-up community, with the city launching a new generation of digital, creative and high-tech start-ups.
Working together
Southampton’s diverse business community is characterised by its interconnectedness. “There’s a real desire here to work collaboratively and attract further inward investment into the region, to promote the place and focus on attracting and keeping a skilled workforce,” says Andy Pringle, director of Start Your Own Business, an online support resource for local start-ups.
This collaborative attitude is typified by the Southern Business Growth Network (SBGN), a community interest company set up to provide practical, hands-on help to SMEs and start-ups. “We have a network of over 30 small businesses in the area who support start-ups with help and advice and services,” says founding director David Vane. The SBGN also set up the Small Business Information Desk in the Central Library. In addition, new businesses qualify for the Hampshire Chamber of Commerce membership package for business start-ups.
A major nest of start-up activity is Southampton University’s Science Park, where 100 businesses at all stages of development are based. Flexible leases, business support and collaboration opportunities are all available, along with meeting facilities and a self-contained conference and exhibition centre. Short-term laboratory rental or access to the Science Centre enables R&D, providing top-level facilities beyond the scope of most early-stage businesses.
Supporting business development
The science park has two business support options. Catalyst is a six-month incubator for science and tech entrepreneurs, offering mentoring, peer group workshops and free premises. And SETsquared is an enterprise partnership between the Universities of Bath, Bristol, Exeter, Southampton and Surrey, aimed at accelerating the commercial success of established high-tech companies.
One beneficiary of the Catalyst programme is Ruby Lee, founder of online knitting pattern company Made & Worn. Lee used her engineering background to create a customisable knitting pattern tool after becoming frustrated with one-size-fits-all printed versions. “I had the initial idea two years ago. Now I have a knitwear designer who works with me, while I do the coding. We’re starting to look for investment and scale-up.”
Hailing from the Isle of Wight, Lee chose Southampton to be close to home, but realised its greater potential. “I underestimated Southampton when I first moved here. It’s a really creative and vibrant city. The community has driven our business, as it’s big enough to have enough people to reach out to, but still small enough to have a close art and craft community.”
Though not a traditional tech company, Lee found the support she needed at the science park. “Catalyst leapt out because of the one-to-one business coaching. I didn’t know how to build a consumer audience business, and they were able to guide me.”
Another success story is Symetrica, a university spinout undertaking radiation detection and gamma ray imaging. “With SETsquared, we helped the company develop a business plan to address the security market, build an effective team and scale from a two-person company to one with 70 staff and a multimillion-pound turnover,” says Birkett. Among the 34 companies incubated by the Catalyst programme, £4.9m has been raised in grants, plus £4.8m of seed investment. Meanwhile, SETsquared’s support in Southampton has seen £1.5bn investment and 20,000 jobs created.
A hotbed of talent and opportunity
Finance can be hard to come by outside the major start-up hubs, as Lee has discovered. “There are fantastic businesses in Southampton doing really cool stuff, but they’re hidden away,” she says. “There isn’t a large investor community here, so you really have to use your network and be prepared to travel.”
Nevertheless, securing investment on the back of a potential customer base shouldn’t be a struggle. “Southampton has a large catchment area to attract potential clients from,” says Pringle. “It’s a diverse audience of residents, people who work in the city, university students, people who live in surrounding towns and tourists, with up to 16 million visitors a year.”
And with two universities located in the city, there’s no shortage of talent either. The University of Southampton is a founding member of the Russell Group and ranked in the global top 1%. “First-class graduate and internship schemes encourage the flow of new ideas into the commercial world, driving future innovation, productivity and competitiveness,” says Birkett. “All science park tenants have opportunities to tap into its research expertise and specialist facilities.”
Lee is confident of finding the skills she needs in the area. “Southampton University is fantastic for technology and engineering. And Solent University has a really good knitting course. We’re lucky that we’re able to work with them and also Winchester School of Art. There’s so much talent in the city, and a lot of people who want to work in a bustling, fast-paced environment.” For start-ups needing experienced hands, there’s no shortage. “Southampton attracts an experienced workforce as there are so many big multinationals in the area,” adds Pringle.
And the city continues to forge ahead. “We’re experiencing tremendous growth with new developments and opportunities,” says Vane, citing the GO! Southampton Business Improvement District scheme.
“Incoming investment of £3bn is destined to create 24,000 more jobs by 2030,” adds Birkett. “The city’s success to date is matched only by its future ambitions, clear vision and ability to deliver.”
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