The most successful startup cities in the UK

The United Kingdom is no exception. From bustling hubs such as London and Manchester to smaller cities like Sheffield and Norwich, all have something unique to offer budding entrepreneurs.

Since lockdown startups have been on the rise with many wanting to take the plunge into starting their own business, but how do you know which is the best location for your business.

Business growth coaches, Growth Idea have dived into the companies house data to pull together how many businesses been open in the major cities throughout the UK, looking at data so far this year January through to July and comparing it to the same time period in 2022.

The data revealed that overall new business registrations across the UK grew by 20.74% compared to last year, and while some cities have declined in the amount of new businesses some areas are continuing to increase.

London needs little introduction; its giant tech sector has drawn in talent from all over the world with its promise of success and a thriving business culture. And it's not just tech startups that do well here. With numerous incubators, accelerators and support programs available, London is an ideal location for any type of startup.

Surprisingly, top cities such as Leeds and Newcastle grew by little with Leeds having a 6.89% increase in business start ups and Newcastle having slightly more at 23.23%. With those that come top there will also be some that come bottom, below are the cities where newly registered businesses declined through the 2 time periods.

Cardiff, Lichfield and Doncaster took a hit with Cardiff having -36.39%, Lichfield -10.06% and Doncaster -0.78% decrease in newly registered businesses over the two time periods. These 3 cities experienced the biggest decline in businesses being started but that doesn’t mean they are not still great locations for entrepreneurs to start their own business.

Our founder, Shweta Jhajharia, has told us her advice for those wanting to start their new business this year. She stated “The key thing to remember is to always do your research. Understand the market you are targeting, as well as the competition so that you can find a niche and really make a difference. Always choose the pain of discipline when starting your new adventure over the pain of non-performance.”

Overall, it is clear that although some cities have experienced a decline in business registrations, the UK is still a great place to start your own business and pursue your entrepreneurial dreams. With support from incubators, accelerators, and other resources aside from financial backing, there are plenty of options for those who want to try their hand at startup life in the UK.

Data:

Data has been collected and reviewed from https://download.companieshouse.gov.uk/ from January 2022 to July 2023

New business registration refers to newly registered businesses in the following categories: Limited liability partnership, limited partnership, private limited company, private unlimited company, public limited company and private limited by guarantee