RESEARCH by Lloyds Bank Business Insurance reveals that the number of businesses in Southampton has grown by almost a fifth (18 per cent) since 2010.

Professional, scientific and technical businesses were the largest driver of growth, accounting for 27 per cent of all new businesses set up in the last seven years.

However, the surge in new enterprises has also been powered by the construction and the wholesale and retail trade sectors.

Both have experienced significant growth, particularly since 2014 when the £85m project to build the West Quay Watermark (as it was then known) development in Southampton's city centre commenced.

Southampton city centre has been the focus of a huge investment injection in the retail and leisure sectors in the past three years, with Westquay being just one of several developments.

Damien McGarrigle, head of business insurance at Lloyds , said: “Our report has uncovered strong business growth in Southampton over the past seven years and it’s great to see investment in the region benefitting so many business types.

“While this growth creates new opportunities for entrepreneurs in the region, it also means new challenges. Starting a business can be a daunting process and getting to grips with legal requirements, finances and insurance can be a minefield.

“Getting the right advice will help start-ups get off to a flying start and safeguard their businesses to avoid being exposed to potentially irreversible damage. Today, a business’ key assets can be anything from data to intellectual property, along with materials and machinery, so these business-critical assets should be protected.”

The five highest growth sectors for new business formation in Southampton between 2010 and 2016 were:

1. Professional, scientific and technical (27.5 per cent) of overall change in business population)

2. Construction (15.1 per cent)

3. Wholesale and retail trade; repair of motor vehicles and motorcycles (12 per cent)

4. Information and communication (11 per cent)

5. Administrative and support service activities (10.3 per cent)

Stewart Dunn, chief executive of Hampshire Chamber of Commerce, welcomed the findings of the research, saying: “This underlies Southampton as a premier player on the south coast leading the way with regenerating the city, with new retail and leisure facilities that have further supported growth in construction. Likewise, innovation in the sciences, technical and professional areas has seen considerable growth putting the area firmly on track to meet the Government’s Industrial Strategy ambitions.”