West Midlands home to two of the UK's strongest growth hotspots
These two spots are the leading the way in the West Midlands and the UK.
West Midlands is home to two of the UK's strongest growth hotspots as scaling businesses power regional momentum.
Telford and Wrekin ranks third nationally, with Solihull also named in the UK’s top 10.
The West Midlands continues to build towards becoming one of the UK’s most competitive business regions, with Telford and Wrekin and Solihull named among the country’s top ten locations for high-growth potential, according to new data released today by Growth Flag.
The Growth Outlook 26 assessed more than 4.3 million UK businesses and highlights a challenging national environment, with only nine per cent of firms across the country expected to grow by 20 per cent or more in 2026 - a fall in number by 16 per cent year-on-year.
A top performer was Telford and Wrekin which ranks third in the UK. 14 per cent of businesses in the area are predicted to achieve high growth in 2026.
The locality benefits from one of the strongest industrial footprints in the country, supported by employers spanning advanced manufacturing, engineering, agri-tech and supply chain industries.
It’s home to well-known operators including Magna Cosma, Müller and Capgemini.
Solihull also secures a place in the UK’s national top 10, with 10 per cent of firms demonstrating high-growth potential.
The borough’s business community includes globally recognised companies such as Jaguar Land Rover and Gymshark, alongside emerging and scaling firms in clean tech, digital services, professional services and automotive innovation.
Growth Flag’s analysis notes that firms across the country are operating under increased financial pressure.
The report identifies 47,600 high-potential businesses showing early distress signals, with more than 726,000 companies nationwide exhibiting signs of strain.
New business registrations have also fallen six per cent, indicating caution among entrepreneurs entering the market.
However, the West Midlands’ sector mix and concentration of internationally competitive firms place the region in a strong position to navigate volatility and build resilience.
Welcoming Solihull’s performance, Cllr Heather Delaney, cabinet member for economy, business & skills at Solihull Council, said: “Solihull’s recognition as one of the UK’s top ten areas for business growth potential reflects the strength of our business community, the ambition of our people, and the strategic investments we’re making to unlock opportunity.
“Our position is a testament to the confidence investors and entrepreneurs place in Solihull as a place to innovate, grow and succeed.”
Richard Jeffery, co-founder of Growth Flag, added: “The West Midlands is home to some of the most exciting commercial stories in the UK and this year’s data reinforces the region’s potential to lead the next phase of business growth.
Places like Telford and Solihull show what happens when the right support and regional sector ecosystems come together to help ambitious firms realise their potential.”
“There is clearly significant opportunity across the region. With continued focus and targeted investment, the West Midlands can grow the number of scaling businesses, drive innovation and create prosperity in every community.”