*Image source: Pexels
With 2.74 million registered businesses in the UK and Google searches for ‘where to start a business’ skyrocketing by 183% in the last month alone, it’s clear that people are looking to take control of their careers and turn their business ideas into reality.
However, launching a new business comes with its challenges, and it’s crucial for prospective business owners to consider various risk factors before taking the leap into entrepreneurship.
With this in mind, a new study from small business comparison site, Bionic, analysing ONS and Nomis data, has looked at economic and business growth as well as risk factors like crime and weather across the UK to reveal the best places in the UK to start a business.
The top 10 places to start a business in the UK
|
Rank |
Local Authority |
Number of Businesses % Difference 2020-24 |
Number of Businesses in 2024 |
Businesses Per 1,000 Pop |
Number of Industries |
GDP 2022 |
Regional gross domestic product (GDP) % Growth 2020-2022 |
Precipitation Summer 2001-2020 median (Daily) mm |
Precipitation Winter 2001-2020 median (Daily) mm |
Crimes Recorded (Non-residential burglary/Theft – burglary business & community) |
Affordability Ratio |
Index Score /100 |
|
1 |
Hackney |
15.2% |
24.8% |
25725 |
91 |
17 |
£47,985.00 |
1.6 |
1.7 |
734 |
13.0 |
43.9 |
|
2 |
Mansfield |
13.7% |
12.0% |
3240 |
30 |
18 |
£20,187.00 |
1.7 |
2.0 |
87 |
5.7 |
42.0 |
|
3 |
Ipswich |
12.9% |
9.4% |
4675 |
33 |
18 |
£36,583.00 |
1.6 |
1.6 |
129 |
7.3 |
40.7 |
|
4 |
Blackburn with Darwen |
12.6% |
23.1% |
5500 |
37 |
18 |
£28,019.00 |
2.9 |
4.1 |
241 |
4.3 |
40.5 |
|
5 |
Kingston upon Hull, City of |
4.7% |
27.3% |
6500 |
25 |
18 |
£29,240.00 |
1.7 |
1.7 |
366 |
4.2 |
40.0 |
|
6 |
Torfaen |
15.5% |
19.2% |
2500 |
27 |
18 |
£24,061.00 |
2.3 |
4.9 |
116 |
5.2 |
40.0 |
|
7 |
Camden |
10.0% |
23.7% |
36290 |
134 |
18 |
£174,117.00 |
1.7 |
1.8 |
1,045 |
17.0 |
39.6 |
|
8 |
Doncaster |
5.2% |
16.7% |
9840 |
32 |
18 |
£24,968.00 |
1.6 |
1.5 |
694 |
5.0 |
39.0 |
|
9 |
Thanet |
11.9% |
17.5% |
4530 |
32 |
18 |
£20,793.00 |
1.4 |
1.5 |
147 |
10.6 |
38.8 |
|
10 |
Wolverhampton |
10.0% |
21.6% |
8200 |
31 |
18 |
£25,595.00 |
1.9 |
2.0 |
516 |
6.3 |
38.4 |
Hackney is the best place in the UK to start a business
*Image for illustrative purposes only
With a 15.2% rise in local businesses over the last five years and a 24.8% increase in GDP since 2020, Hackney ranks as the UK’s best place to start a business.
Despite its booming economy, Hackney maintains an affordability ratio of 13.0, making it more accessible than many other business hotspots in London. While business-related crime remains a problem in Hackney, with 734 thefts and burglaries being recorded against businesses last year, its economic growth and vibrant industry diversity cement its position as the UK’s top destination to start a business.
Mansfield is the best place to start a business outside of London
Outside of London, Mansfield is the top location to start a business. Since 2020, the number of businesses has risen by 13.7%, GDP has grown by 12.0%, and industry diversification has flourished, making Mansfield a thriving hub for enterprise.
With 3,240 businesses (30 businesses per 1,000 people), the town offers a supportive environment for entrepreneurs, and with an affordability ratio of 5.7, it is one of the most cost-effective places to establish a business in the UK.
Bionic spoke to Mansfield District Council’s Portfolio Holder for Regeneration and Growth, Cllr Stuart Richardson, who said: “Mansfield is most definitely open for business and the place to be if you want to reach customers.
Mansfield’s fortunes appear to be on the rise, and this district is not only a great place to live and work but also a sound place to invest. With various multi-million pound investments on the horizon for the town centre, Mansfield is going to blossom in the coming months and years.”
Ipswich is the third-best place in the UK to start a business
Ipswich ranks as the third-best city in the UK to start a business, with a 12.9% increase in local businesses since 2020 and a 9.4% rise in GDP.
With 4,675 businesses (33 businesses per 1,000 people), the town provides a solid foundation for entrepreneurs seeking to establish and grow their business venture ideas.
Also, with Ipswich having a relatively low affordability ratio of 7.3 and crime rate, with 129 burglaries and thefts being recorded against businesses last year, Ipswich offers an affordable as well as a relatively safe and sustainable environment for start-ups.
