These are the BEST cities to start a business, according to a new study
After such many challenging years for businesses across the UK, Instant Offices has analysed Companies House data to work out which UK cities are fighting back with the strongest entrepreneurial spirit?
Instant Offices analysed the population to startup ratio across the country’s top cities to discover which locations saw the highest concentration of entrepreneurs in the last 12 months. The data revealed the top locations for entrepreneurs launching new ventures.
Manchester came out on top as the UK’s most entrepreneurial city, with a 23% increase in the number of businesses registered in 2021. This means one company was registered per every 31 people living in the city.
Which cities are the best to start a business in?
The data showed that after Manchester, Preston and Doncaster are in the second and third positions. Both of these cities have seen significant growth in business over the past two years since the pandemic started.
| City | %Growth(YoY) | Population | Companies started in 2020 | Companies started in 2021 | Entreprenurial Index |
| Manchester | 23.9 | 554400 | 14083 | 17442 | 3.15% |
| Preston | 24.6 | 99198 | 2316 | 2889 | 2.91% |
| Doncaster | 26.9 | 114900 | 2416 | 3067 | 2.67% |
| Bedford | 1.9 | 92405 | 2172 | 2214 | 2.40% |
| Stockport | 12.3 | 110000 | 2080 | 2336 | 2.12% |
| Oldham | 3.3 | 105402 | 2114 | 2184 | 2.07% |
| Salford | 20.4 | 116361 | 1928 | 2321 | 1.99% |
| Milton Keynes | 14.8 | 184105 | 3021 | 3469 | 1.88% |
| Bolton | 21.6 | 202369 | 3090 | 3756 | 1.86% |
| St Albans | 28.1 | 86961 | 1311 | 1597 | 1.84% |
Which cities are the worst to start a business in?
The worst place to start a business at the moment is Derby followed by the likes of Rayleigh and Hastings. Although they’ve all had a good percentage of growth YoY, other cities surpass them.
| City | %Growth(YoY) | Population | Companies started in 2020 | Companies started in 2021 | Entreprenurial Index |
| Sunderland | 30.4 | 175031 | 865 | 1128 | 0.64% |
| Reading | 12.3 | 229274 | 1259 | 1414 | 0.62% |
| Kingston upon Hull | 27.9 | 288671 | 1342 | 1717 | 0.59% |
| Hartlepool | 14.3 | 89610 | 442 | 505 | 0.56% |
| Plymouth | 17.1 | 241179 | 993 | 1163 | 0.48% |
| Sale | 3.1 | 137915 | 573 | 591 | 0.43% |
| Birkenhead | 9.4 | 144756 | 513 | 561 | 0.39% |
| Hastings | 18.5 | 93592 | 271 | 321 | 0.34% |
| Rayleigh | 17.2 | 98809 | 232 | 272 | 0.28% |
| Derby | 9.8 | 263933 | 518 | 569 | 0.22% |
Ecommerce businesses are thriving the most in the UK
But what types of businesses are thriving in the UK at the moment and how many have been started in the past year? Well, it looks like Ecommerce and Real Estate have taken the top spot.
The widespread switch to remote working and online shopping fuelled a digital transformation in the UK. This has also given aspiring entrepreneurs the final push needed to start their own businesses from home.
| Type of Company | Number Registered In The Past 2 Years |
| Retail sale via mail order houses or via Internet | 69,016 |
| Buying and selling of own real estate | 56,519 |
| Other letting and operating of own or leased real estate | 49,436 |
| Management consultancy activities other than financial management | 48,494 |
| Other service activities n.e.c. | 38,115 |
| Freight transport by road | 34,868 |
| Other business support service activities n.e.c. | 33,573 |
| Development of building projects | 27,617 |
| Information technology consultant activites | 26,418 |
| Construction of domestic buildings | 20,943 |