BOURNEMOUTH’S small and medium sized businesses are growing at a faster rate than anywhere else in the country, research has suggested.

The Barclays Prosperity Map found small businesses in the area had seen their turnover rise by 19 per cent since last year, the largest figure of any town it surveyed.

SME turnover in London grew by seven per cent, while the figure for the south west was five per cent.

Barclays’ Prosperity Index showed a rise in prosperity in the South West, despite volatile stock markets, China’s slowdown and the Brexit vote.

The research creates a Prosperity Index Score for each UK region, drawing on factors including the number of millionaires, average pay, the percentage of households giving to charity, business growth rates and exam scores.

It found prosperity in the region was boosted by a strong housing market, with average house prices rising seven per cent year-on-year to £233,974 – the fourth highest increase in the country.

The SME scene played an important part in the prosperity of the region, Barclays said.

Craig Jamieson, Barclays Wealth and Investment Management’s regional director for Solent, Dorset and Hampshire, said: “It is very encouraging to see that prosperity in the South West is on an upwards trajectory, with our region’s innovative entrepreneurs playing a vital part in supporting our growth.

“The fact that Bournemouth’s SMEs are growing at a faster rate than anywhere else in the country demonstrates that we are ready to compete with the capital when it comes to providing the right conditions to start and grow a successful business and drive prosperity more widely.

“With growth in prosperity recorded across the country, it is clear our region is playing an important role in this trend. It is more important than ever that business leaders and policy makers continue to create new opportunities to keep our region, and the UK, ‘open for business’ and continuing on this trajectory.”

Paul Swinney, principal Economist at the Centre for Cities, said: “Entrepreneurship is an important marker of prosperity, not just because of the businesses and the revenue and jobs they generate, but because of what they represent – an innovative and thriving environment where people have the confidence to trial new ideas.”

GDP in the south west grew faster than many other UK regions, coming in fifth place in the ranking with 11.2 per cent growth, above London (eight per cent). Unemployment reduced by 1.1 per cent and average earnings went up by three per cent £24,428.

The number of millionaires in the region reduced by 5.1 per cent – from 59,000 to 56,000 – in line with the UK trend.