- New data analysis from SME lender iwoca reveals that 2,251 new businesses were registered in Herefordshire between January and June 2026, according to Companies House data.
- Total business registrations in Herefordshire rose 66% compared with the same period in 2025, vastly outpacing both the West Midlands’ 2% regional growth and the 9% national rise.
- Herefordshire has the ninth-highest rate of business creation per capita of any local authority in Britain, up from 30th last year.
- Herefordshire overtook both Coventry and Birmingham to become the West Midlands’ top local authority for business creation per 100,000 residents, having ranked third in the region last year.
Business registrations in Herefordshire rose 66% in the first half of 2026, according to research by iwoca — one of Europe’s largest small business lenders.
iwoca’s Business Hotspots 2026, derived from an analysis of Companies House data, reveals that 2,251 businesses were registered in Herefordshire between January and June 2026, the equivalent of 13 businesses every day. This is a sharp increase from 1,354 in the same period last year, and the fastest growth of any local authority in the West Midlands.
Herefordshire overtakes Coventry and Birmingham to lead the West Midlands
Herefordshire now has the ninth highest rate of business creation per capita of any local authority in Britain, climbing from 30th place in 2025. That rise saw it overtake both Coventry and Birmingham to become the West Midlands’ most active local authority for new business creation per capita, with 1,169 new businesses per 100,000 residents. Wolverhampton climbed to second with 783 businesses per 100,000, while Coventry fell to fourth in the region after registrations dropped 13%, and Birmingham slipped to third.
Birmingham remained the West Midlands’ largest hub by volume, with 8,514 new businesses registered, though this was broadly unchanged from last year. Staffordshire was the region’s second-largest hub by volume, with 3,221 new businesses registered, up 9% on 2025, while Warwickshire was third with 2,623, though registrations there fell 8% compared with last year.
Herefordshire’s growth vastly outpaces the regional and national picture
Herefordshire’s 66% growth in total business registrations far outpaced the West Midlands’ 2% regional growth and the 9% rise recorded nationally. The West Midlands’ growth this year was the second-slowest of any region or nation in Britain, faster than only Wales – the sole nation to see registrations fall in 2026.
This marks a partial recovery for the West Midlands, which saw registrations fall 18% in 2025 following the introduction of stricter requirements by Companies House.
Herefordshire’s growth comes as the county continues to invest in its business infrastructure. The Hereford Enterprise Zone, Skylon Park, had its Local Development Order renewed for a further five years in 2025, and Herefordshire Council approved up to £1.4 million in retained business rates in August 2025 to fund a county-wide business growth, skills and inward investment programme. The local authority also launched an Invest in Herefordshire website to provide a clear gateway for businesses looking to start, grow or relocate, showcasing key sectors, development opportunities, and Herefordshire-specific guidance on skills, funding and support.
Seema Desai, Chief Operations Officer at iwoca, said: “New businesses are a strong indicator of confidence in the economy, so it’s encouraging to see registrations bounce back this year following last year’s slowdown. Herefordshire’s business community has had a standout first half of 2026 despite uncertain economic headwinds. The fact that over 2,200 new businesses launched in just six months is a clear signal that Herefordshire’s entrepreneurial appetite hasn’t gone away”.
