Brighton takes crown as best UK city to start a new business, London only comes eighth
Brighton is the best location to start a small business in the UK according to research compiled by Informi, the website offering free practical advice and support for small businesses. By contrast, London only made it to number eight on the list.
Ahead of this year’s Small Business Saturday on 3 December, Informi studied information from 65 UK cities relating to a number of factors that can be important for smaller company survival, including the density of small and medium sized businesses (SMEs) in an area, digital connectivity and house prices. Brighton came top of the list for the second successive year, due predominantly to its superfast broadband penetration rate, low pollution levels and high number of business start-ups.
Cambridge and Leicester take the silver and bronze positions, also for the second year in a row. Technology hub Cambridge scored well on its low number of SME closures and strong digital connectivity; while Leicester got good marks for its relatively large number of high growth SMEs – companies expanding their workforce by over 50% – in the city.
Other cities in the top twenty include Bristol, Aberdeen, Leeds and Southampton. London made it to number eight on the list up one place from last year, ranking first for the number of business start-ups and density of SMEs. However, the capital’s high property prices, large number of SME closures and relatively moderate broadband speeds put it below cities including Aldershot, Reading and Northampton.
The highest mover on the list was Liverpool, which moved up 26 places to 22, largely due to a fall in the number of SME closures and a reduction in CO2 emissions. Worthing was the biggest faller, slipping 28 spots from fourth place to 32, due mainly to a fall in high-growth start-ups being located there.
Best cities to start a business in the UK 2016 (change from 2015 in brackets)
1. Brighton (0)
2. Cambridge (0)
3. Leicester (0)
4. Bristol (+2)
5. Northampton (+6)
6. Reading (-1)
7. Aldershot (0)
8. London (+1)
9. Aberdeen (+5)
10. Leeds (+16)
11. Burnley (+22)
12. Southampton (+12)
13. Coventry (-1)
14. Bournemouth (-1)
15. Derby (-5)
16. Portsmouth (0)
17. Manchester (+6)
18. York (+12)
19. Basildon (New entry)
20. Blackburn (-5)
Darren Nicholls, spokesperson for Informi said:
“We are on course to see a record number of start-ups in the UK during 2016, demonstrating that the entrepreneurial spirit is as strong as it has ever been. New businesses can be found across every region and industry, bringing new jobs and prosperity and growth to their local economies.
“It is encouraging to see that London is not the only environment where small businesses can thrive. However, for every success story there are still far too many that struggle to get off the ground. SME owners should ensure they take every opportunity to seek out information and support that will help them get the fundamental ingredients of business in place to give their firm every chance of prospering.”