1. London
London distinguishes itself as a prime location for start-ups due to its access to a large and diverse talent pool and a catchment population exceeding 9 million. The city boasts a resilient economy and a strong entrepreneurial spirit, hosting over 1 million private businesses—the highest number of start-ups in the UK. A significant 75% of London residents express interest in starting their own businesses. London attracts over 70% of the country’s venture capital investment and provides numerous incubators and accelerators, solidifying its position as a global start-up hub. In 2024, London was ranked fifth among the best cities for start-ups. London's start-up ecosystem is one of the strongest globally, fostering innovation and success. London excels in Energy & Environment, ranking third, as well as in Fintech, and Social & Leisure.
2. Birmingham
While the search results do not provide specific details for Birmingham, its consistent presence in top rankings suggests a strong start-up environment.
3. Manchester
Manchester was recognized as the UK’s most entrepreneurial city in 2021, with operating business costs 20% lower than those in London. In 2023, the Greater Manchester area led the UK in new company formations and stood out as the largest hub for start-up activity outside London, as approximately 1,600 start-up businesses raised record investments. Eligible businesses can access support from social investment schemes and various business loans.
4. Glasgow
Glasgow boasts a 7% business growth rate and was named the best UK city for small businesses in 2022, with a short commute and support from local authorities. The city hosts over 50,000 companies and has an active start-up scene, outstripping many UK and European cities by attracting record levels of investment that have grown by over 500% since 2019. The city council offers subsidies and funding support through programs targeting different sectors and entrepreneur profiles.
5. Bristol
Bristol is a leading business hub for high-growth start-ups, especially in the tech and digital industries. Recently, it was named the best UK city for independent businesses outside London, achieving high scores for the quality of its local start-up programs and overall quality of life. Bristol benefits from reasonable office space costs and good 5-year business survival rates. Funding opportunities support new businesses in the city’s creative sector.
6. Newcastle
Newcastle stands out in Europe’s start-up ecosystem for its quality start-up programs, affordability, and reasonably priced office space, alongside some of the highest 5-year survival rates among major UK cities. High business turnover and a variety of co-working spaces made Newcastle the best UK city to start a small business in 2024. The city was one of the best in Europe for attracting foreign investment due to the availability of funding and financing options, from angel investors to accelerators and venture funds.
7. Luton
Luton is home to nearly 9,000 businesses and is focused on improving skills development programs to provide local entrepreneurs with access to top talent. Luton ranks first among the best small cities for start-ups, with increasing business birth rates since 2022 and attention from local and international investors. Luton achieved top rankings as one of the best UK cities for entrepreneurs due to its relatively low business closure rates and the cost of office space. Luton Startups aims to establish Bedfordshire as a hub for business innovation by empowering local entrepreneurs with the necessary support to grow and succeed. Luton Startups has supported over 100 start-ups through incubation and mentorship, contributing to job creation. They have distributed over £500,000 in non-repayable grants to early-stage businesses and have a 75% success rate among funded start-ups.
8. Brighton
Brighton is ideal for businesses in the creative and ICT sectors, which have experienced substantial growth since the 1990s. Surveys indicate the city is a good place for entrepreneurs, citing its rich and diverse economy, proximity to London, and reputation as an innovation and creative hotspot. In 2021, Brighton had the UK’s second-highest rate of start-ups per 10,000 people.
9. Reading
In 2024, Reading ranked second among the best cities for start-ups, with high scores in business death and birth rates, 5-year business survival rates, productivity levels, and average office space costs. Berkshire broke a record for new businesses in 2023, and Reading benefits from its proximity to London and the strength of its local tech and creative sectors.
10. Nottingham
Nottingham has seen increasing business growth rates since 2017, particularly in FinTech, creative industries, and life sciences. Additional benefits of starting a business in Nottingham include a solid Foreign Direct Investment strategy, a diverse business community ranging from small enterprises to multinationals, and the quality of its business centers and office accommodations, Nottingham offers core business support via Nottingham City Council, linked to the Growth Hub service, to guide growing businesses to the best help available.
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