The number of new locally owned businesses opening across the UK last year reached a record high since the start of the COVID-19 pandemic, according to Plunkett UK.
The report, by the national charity which supports community businesses in rural areas, said the community business sector grew by 4% last year, with 32 new entities set up for a total of 787 community businesses trading by the end of December 2023. The figures also show that the community business sector has almost doubled in the past 10 years, with more than 350 new community businesses opening.
“Thanks to the tireless work of the network of locally owned businesses supported by Plunket UK, we are seeing a growing number of resilient, thriving and inclusive rural communities across the country,” said Dominic Hare, CEO of Blenheim Palace, which is a sponsor of Plunket's Impact Report 2024.
“Contrary to expectations, the five-year survival rate of community businesses remains an incredible 99% – more than double the UK Office for National Statistics data for small businesses over the same period (44%). The survival rate of community-owned businesses over 20 years old also remains an incredible 92%. In reality, very few businesses that become community-owned go out of business.”
The 2024 Impact Report was published at the midpoint of Plunket UK's five-year strategy, which includes ambitions to grow the community business sector by 20% by 2026, providing more of the services and amenities communities value and need, strengthening local economies through more localized supply chains, and creating access to more jobs, training and volunteering opportunities. Tackling climate change and promoting equity, diversity and inclusion are also part of the strategy.
In 2023, Plunkett received 424 enquiries and provided 606 days of personalised support to 260 local businesses by matching community groups with specialist advisers, while in the same year £2.9m was raised from 3,600 people in rural areas who bought community shares last year to help these businesses open their doors.
Last year saw the community open 16 pubs, 14 shops and one cafe, as well as the opening of Focus Easington, a mixed-use hub in County Durham.
Focus Easington is based in Easington Colliery Methodist Church, which has been at risk of closure since 2022, providing a vital local service to people in need in an area with high deprivation. Plunkett worked with Benefact Trust to support the community's aspirations to compassionately modernise the church and turn it into an accessible, multi-functional community space offering regular young people services, a lunch club, career support sessions, health and wellbeing services and a locally owned laundromat.
One of the pubs opening is Mentor-y-Glan in Powys, Wales, which won the Local Food and Local Supply category in the Plunket Rural Business Awards 2023. The business operates around a 'farm-to-table' approach, using meat, dairy and vegetables and serving drinks from over 40 local suppliers.
“Behind every recipe there is a story of how that food or drink (sold in our pubs) was made,” says Mentor y Gran. “We believe this approach not only embeds the local economy in people's purchasing choices, but also creates a sense of place and deepens, or most often reconnects, people with nature, the seasons and how their food is produced.”
In addition to its work in rural communities, 2023 will see a rebranding of Plunkett UK and the launch of the charity's Universal Business Support Service.
“Every local business that is now open is a testament not only to the model but to the thousands of people behind it who are driving it forward every day,” Dominic Hare added.
“As the times remain challenging, I would encourage local business leaders to make the most of the valuable advice and support available through Plunket and seek their support every step of the way. You are not alone – you are in great company.”
