January 30, 2024
When considering the launch of a new venture, the choice of location is as crucial as the business idea itself. Newcastle has emerged as the prime location for starting a business in the UK in 2023, boasting a significant growth in new businesses and an impressive average turnover. The city not only offers more affordable monthly rent compared to its counterparts but also provides robust support for startups through the North East Growth Hub and a network of incubators.
Other cities that have made it to the top of our rankings include:
Choosing the right city can make a significant difference in the trajectory of your business. Factors such as growth opportunities, potential earnings, living costs, and quality of life all play a part in this important decision. Our comprehensive guide includes insights on tax, marketing, and other essential aspects to help you navigate the complexities of starting and running a successful business.
The landscape of the UK's business sector is ever-evolving, with certain companies surging ahead in terms of growth. The most remarkable growth has been observed in startups that have shown a significant increase in turnover between 2021 and 2022. These companies, often at the Seed, Venture, or Growth stages, have not only raised equity funding but have also reported turnovers exceeding
£100k in the previous year.
The resilience and innovation of UK-based entrepreneurs have kept the high-growth ecosystem thriving despite economic challenges, such as the aftermath of the pandemic and rising interest rates affecting venture capital.
The list of the top 10 fastest-growing companies offers a glimpse into the sectors that are currently leading the charge:
...and so on until the 10th company.
These companies are not just numbers on a chart; they represent the dynamic spirit of the UK's economy, pushing boundaries and setting new benchmarks for success.
While London may be the first city that comes to mind when thinking about UK startups, several other cities are making their mark as vibrant startup hubs. Edinburgh, Manchester, Leeds, Birmingham, and Bristol stand out as the quintessential epicentres of innovation. Each city boasts a unique blend of historical significance, industrial resurgence, and economic dynamism, fostering a supportive environment for new businesses.
These cities are not only contributing to the UK's economic growth but also providing a platform for entrepreneurs to connect, collaborate, and innovate. With each area on an upward trajectory, the sustained impact on the UK's business and innovation landscape is anticipated to be significant.
In conclusion, the UK offers a wealth of opportunities for aspiring entrepreneurs looking to start a business in 2023. With top cities for small businesses, fastest-growing companies, and a thriving startup ecosystem, the UK continues to be a hub for innovation and growth. Whether it's the support from incubator networks, access to venture capital funding, or the resilience of UK-based entrepreneurs, the landscape for starting a business in the UK is promising. As we look ahead to 2024, the potential for new ventures and business growth in the UK remains strong.
The top cities to start a business in the UK are Newcastle, London, Manchester, Birmingham, Glasgow, and Bristol.
The fastest-growing companies in the UK are those that saw the greatest turnover growth between 2021 and 2022, met specific criteria, and are operating at the Seed, Venture, or Growth stage of evolution.
The startup hubs outside London include Newcastle, Manchester, Birmingham, Glasgow, and Bristol, among others.
Newcastle claimed the top spot for most new businesses started in 2023.
The key factors for choosing a location to start a business in the UK include growth opportunities, potential earnings, living costs, quality of life, and business support.
Startups in various sectors such as Deep Tech, Fintech, Health & Tech Bio, Climate Tech, Marketplaces, and Consumer-focused startups are thriving in the UK.