Business in Hertfordshire

Hertfordshire has one of the strongest and most varied local economies in the UK. Its position between London, Cambridge and the Midlands makes it an attractive place to start, run and grow a business.

The county is home to international companies, family firms, specialist manufacturers, retailers, farms and thousands of self-employed people. It is particularly strong in life sciences, technology, film and television, advanced engineering and professional services. However, its economy also depends on the builders, shops, restaurants, accountants, tradespeople and other small businesses that serve local communities.

A County of Small and Large Businesses

Many Hertfordshire businesses are small. They range from one-person consultancies and online retailers to engineering companies, creative agencies and building contractors. Some operate from town-centre offices, while others are based on industrial estates, business parks, farms or in their owners’ homes.

These smaller businesses sit alongside major employers and internationally important industries. Hertfordshire has a strong life sciences sector, as well as businesses involved in aerospace, defence, electronics and advanced manufacturing. The county has also become one of the UK’s leading centres for film and television production.

Warehouses and distribution centres are another important part of the local economy. Hertfordshire is crossed by the M1, A1(M), M25 and A10, making it a useful base for businesses that need to reach London and the rest of the country.

Watford and South West Hertfordshire

Watford is one of Hertfordshire’s largest commercial centres. Its closeness to London and excellent road and rail connections have helped it attract company headquarters, professional services, finance businesses and technology companies.

The town centre supports a wide range of shops, restaurants, leisure businesses and offices. Business parks around Watford provide space for larger employers and companies that need easy access to the M1 and M25.

Nearby Leavesden is known around the world for film production. Warner Bros. Studios Leavesden and the businesses that support it have created work for production companies, set builders, designers, caterers, transport operators and many other specialists.

St Albans

St Albans is Hertfordshire’s only city. It has a strong professional and business services sector, with accountants, solicitors, financial advisers, consultants and marketing companies serving clients across the county and in London.

Its historic centre also supports tourism, independent shops, pubs, restaurants and hotels. St Albans is a popular place to live, which helps local employers attract skilled people. However, high property costs and pressure on roads and parking can make it a challenging location for some businesses.

Hemel Hempstead

Hemel Hempstead grew rapidly as a new town after the Second World War and remains an important business location. Maylands Business Park is home to companies involved in technology, distribution, construction, manufacturing and business services.

The Hertfordshire Innovation Quarter is encouraging further investment in the area. It aims to support new jobs and provide modern space for businesses involved in areas such as green technology, engineering and digital services.

Hemel Hempstead’s position close to the M1 and M25 makes it especially useful for businesses that need good road connections.

Stevenage

Stevenage is an important centre for science, engineering and advanced technology. The town has a long connection with aerospace and defence, while its growing life sciences cluster includes research organisations, laboratories and businesses developing new treatments and medical technology.

Investment in the town centre, railway station area and science facilities is helping Stevenage develop beyond its original new-town design. This creates opportunities for construction companies, shops, hospitality businesses and professional services, as well as science and technology employers.

Hatfield and Welwyn Garden City

Hatfield has a strong connection with aviation and engineering. Although aircraft production ended many years ago, the former airfield and surrounding area have been redeveloped for homes, education, shops and business premises.

The University of Hertfordshire is a major local employer and supports research, business start-ups and the supply of skilled graduates. Hatfield Business Park is home to companies working in technology, retail, logistics and professional services.

Welwyn Garden City has a mixture of offices, manufacturing, retail and distribution businesses. Its planned layout, green spaces and rail links make it an attractive base for employers and their staff.

Hertford and East Hertfordshire

Hertford is the county town and has a large public-sector presence. It also supports legal, financial, property and professional services, along with a lively collection of independent shops, cafés and restaurants.

Ware has a mixture of smaller businesses and larger employers, including companies connected with pharmaceuticals and life sciences. Bishop’s Stortford benefits from its proximity to Stansted Airport and supports businesses involved in travel, hospitality, distribution and international trade.

Much of East Hertfordshire is rural. Farming remains important, but farms have changed and diversified. Some now provide offices, workshops, storage, leisure activities, holiday accommodation or renewable energy alongside traditional agriculture.

North Hertfordshire

Hitchin, Letchworth Garden City, Baldock and Royston each have their own business communities. Hitchin has a busy centre with independent retailers, hospitality businesses and professional services. Letchworth supports manufacturing, engineering, distribution and office-based companies.

Royston’s location close to Cambridge helps it attract science, technology and engineering businesses. It also serves a wide rural area, creating work for agricultural suppliers, tradespeople and service companies.

Borehamwood and the Film Industry

Borehamwood and Elstree have been associated with film and television for more than a century. Studios in the area continue to produce major films and television programmes.

The industry supports far more than actors, producers and camera crews. Local businesses provide construction, costumes, equipment hire, security, transport, catering and accommodation. Hertfordshire’s combination of studios, historic buildings, countryside and easy access to London has helped the county become a leading UK location for screen production.

How Business Has Changed

Hertfordshire businesses have faced major changes in recent years. More people now work from home or divide their time between home and the workplace. This has reduced demand for some traditional offices but increased interest in smaller, flexible workspaces.

Town centres are changing too. Online shopping has placed pressure on some retailers, while demand has grown for cafés, restaurants, leisure activities, personal services and experiences that cannot be bought online. Empty shops and offices are increasingly being considered for new uses.

Digital technology has made it easier for small Hertfordshire businesses to sell across the UK and overseas. It has also increased competition. Businesses must now pay closer attention to their websites, online reviews, social media, cyber security and the ways in which customers search for information.

Challenges for Hertfordshire Businesses

Being close to London brings opportunities, but it also creates problems. Employers can find it difficult to recruit and retain skilled staff when they are competing with London salaries. High house prices and rents can make it harder for younger workers to live close to their workplace.

Traffic congestion, pressure on public transport and the limited supply of suitable business premises can also restrict growth. Smaller firms continue to face higher costs for energy, materials, wages and borrowing.

Skills will remain an important issue. Local schools, colleges, the University of Hertfordshire and employers will need to work together so that people can train for jobs in growing industries.

The Future of Business in Hertfordshire

Hertfordshire is well placed for future growth. Life sciences, advanced manufacturing, digital technology and the creative industries are all expected to remain important. Artificial intelligence and automation will change how many businesses operate, from factories and laboratories to shops and offices.

The move towards a lower-carbon economy will create opportunities in renewable energy, sustainable construction, electric transport and environmental services. Existing businesses will also need help to reduce energy use, cut waste and meet new environmental standards.

New homes and communities will increase demand for shops, schools, healthcare, construction and local services. However, growth will need to be supported by better transport, digital connections and suitable places for people to work.

The county’s biggest strength is its variety. Hertfordshire does not depend on a single town or industry. Its mix of global employers, innovative companies and small local firms gives it a strong base from which to meet the changes ahead.