Best Cities For Startups In The UK

When it comes to entrepreneurship, location is key.

There are many of vibrant cities in the UK with diversified economies and strong startup ecosystems that are ideal for starting a business.

Cities like Bristol, Manchester, and Edinburgh provide an abundance of resources to help your company take off. Whether you’re looking for capital, mentorship, or a pool of brilliant workforce and with their lively neighbourhoods and entrepreneurial energy, these locations are ideal for planting the seeds of a startup and seeing it flourish.

In this article, Incorpuk explores some of the UK’s top cities for startups and what makes them such attractive places to launch a business.

What Makes a Place Good for a Startup?

Although each organisation is unique, you might need to take into account a distinct set of requirements, but this list should provide you with a solid starting point.

1. Business landscape: The dynamic environment that organisations operate in, which includes market conditions, customer wants, competitive factors, and technical improvements, is referred to as the “business landscape.”
2. Access to talent:  A city with a talented workforce, particularly in fields such as technology or finance, can be advantageous for startups. Universities and research centres can be excellent sources of talent, with students and graduates studying computer science, engineering, and business.
3. Quality of life: Quality of life is a key consideration for startups, since it affects employee happiness and retention. A city with a reasonable cost of living can make it simpler for startups to attract and retain personnel, especially if salaries are lower than in other large cities.
4. Growth and development: Growth and development are important considerations for startups since they require access to resources and opportunities that help them expand. Cities that provide government assistance, such as tax breaks, funding programs, or regulatory support, can help companies grow and prosper. Additionally, a city with a robust startup ecosystem—which includes co-working spaces, accelerators, and incubators—can provide entrepreneurs with access to resources like investors and mentors to aid in their development.
5. Infrastructure: An essential part of a city’s commercial climate is its infrastructure. Startups require dependable access to transportation and other infrastructures, as Startups can find it easier to move people and things efficiently in a city with adequate public transport, a well-developed road network, and reliable internet access.

Top Cities For Startups In The UK

1. Newcastle

Newcastle was recently recognised as one of Europe’s top cities for luring foreign direct investment for the year 2023. Newcastle-upon-Tyne, on the northeast coast of England, is well-known for its extensive industrial and shipbuilding history, but in recent years, it has also become a centre for academic achievement, the creative industries, and technology. Due to this, the city has become a desirable location for business owners and startups, particularly those in the energy and climate tech sectors.

Newcastle has a population of more than 300,000 and its cost of living is reasonably inexpensive. Hence, Newcastle has a larger proportion of high-skilled workers than the UK and regional averages.

This city offers opportunities for startups to network with executives in the business world. For instance, Newcastle hosts the Startup Week festival each year in addition to other networking events that provide opportunities for collaboration, networking, and training, like TechNExt, Dynamo North East, North East Chamber of Commerce, and Entrepreneurs’ Forum.

When it comes to funding Newcastle’s entrepreneurs benefit from a variety of financing sources when it comes to startup programs and business support, including:

1. Northstar Ventures
2. Newcastle University Enterprise Lab
3. Ignite Accelerator
4. Newcastle Angel Hub
5. North Invest and
6. North East Venture Fund

2. London

London’s population is projected to be more than 9.5 million. The city’s sheer size and availability of chances make it one of the most desirable destinations for startup founders. With the proper help and mentoring, emerging firms can gain access to world-class funding, talent, and community support.

There is a large network of investors looking to make pre-seed and seed stage investments in firms in their early stages. For example, Seedcamp has established itself as one of Europe’s leading seed stage venture capital firms, funding startups throughout the continent, including Revolut, Wise, and UI Path. Other notable seed funds include Saul Klein’s LocalGlobe, Playfair, and First Minute Capital.

There are numerous entrepreneurial community associations in London to cater to the large number of startups. Some of the networking events available to start-ups  includes;

1. London Tech Week
2. Black Valley and
3. Tech London Advocates

3. Leicester

Leicester’s population in 2024 is now expected to exceed 500,000. This city, long known for textiles and shoes, has evolved into one of the top UK places for launching a startup in engineering, cuisine, and retail.

New business registrations and employment openings have been constantly increasing throughout the city. Aside from that, the city boasts a vibrant startup ecosystem that organises networking events, industry fairs, and financing presentations. And, with the region’s average monthly rent less than a third of that of London, it’s a very affordable place to live and work. Leicester also features initiatives like Barclays Eagle Labs and the Leicester Startups community, which provide a support network and funding for emerging companies.

4. Coventry

With a population estimated to be over 400000, Coventry and Warwickshire are among the most attractive places in the UK for new enterprises to establish themselves. The city is home to a flourishing business community that is concentrated in industries like manufacturing, aerospace, and automobiles.

According to current data, small firms in Coventry generate an average annual turnover of roughly £70,000, showing room for expansion. This city also has a thriving startup scene, offering entrepreneurs access to a number of investment firms and networking opportunities. Among the important organisations are:

1. Coventry city council
2. Coventry and Warwickshire Chamber of Commerce

5. Doncaster

Doncaster already enjoys an excellent track record in a number of important industries, including rail, engineering, aviation, and advanced manufacturing. With a population of over 300,000, Doncaster is an economical area to live and work since it has a lower cost of living than many other UK cities.

The city does have Launchpad, South Yorkshire Investment Fund, and Startup South Yorkshire to assist firms in launching and expanding their ideas, despite the fact that there aren’t many startup programs available.

6. Manchester

In recent years, there has been a global surge in technology, but Manchester appears to be a standout in the digital domain. In fact, it is projected to become a global leader in digital technology, making Manchester a perfect location for companies that use or develop such technology.

Manchester has a population of over 2.7 million people and offers a high quality of life and a variety of activities. And, while typical rent is on the upper end of the scale, earnings are comparatively higher.

If you are considering launching a business, you can also take advantage of numerous startup programs and incubators to help get your startup off the ground. The Natwest Entrepreneur FinTech Accelerator, Manchester Digital, and Accelerateme are three options to consider, but there are many more if you do your research.

7. Norwich

Norwich, a historic city in Norfolk, has a vibrant startup ecosystem and strong business community. With a broad economy and a concentration on industries such as technology, creative, and financial services, Norwich has emerged as a desirable destination for UK entrepreneurs.

There are various grants, funding, and business support options available to firms in Norwich and the surrounding region. For example, Sync the City offers an Apprentice-style competition for companies, while the New Anglia Small Grant Scheme is open to local enterprises. A comprehensive list of grants and funding for startups is provided by Norfolk City Council, and it can assist you with your research.

8. Birmingham

In terms of industry, manufacturing, and technology, Birmingham has a long history of setting the standard. And today a new breed of creative digital firms call the city that gave birth to the microwave and Dunlop’s first pneumatic tires home. Over 292, 000 firms operate in the city alone, many of which have experienced notable growth and recognition in recent years.

For founders, there is an enormous need for a community and support systems. Therefore, a variety of organisations that support businesses are available to both local and emerging entrepreneurs in the region. Examples of these organisations are Tech West Midlands, which organises Birmingham Tech Week, and Innovation Birmingham, which serves as a hub for the city’s tech and innovation community.

Also, among the city’s leading investors are the UK Innovation Science and Seed Fund, SFC Capital, and Mercia Ventures

9. Stoke-on-Trent

Stoke-on-Trent’s population in 2024 is now expected to be over 350,000. In the centre of the nation, this city offers an excellent place to live, work, invest, socialise, and conduct business. A burgeoning startup scene is present in the city, with a number of prosperous companies operating in industries like Tech, and engineering.

Startups can also benefit from a number of grants, loans, and investment programs offered by Stoke-on-Trent. As an illustration, consider the UKSPF Powering Up Inward Investment fund and the Fly High Start-Up and Enterprise grant.

10. Glasgow

Glasgow was recently named as the greatest city in Scotland to start a business, with the highest number of new enterprises established per capita in the country. Glasgow has developed as a powerhouse for innovation and entrepreneurship in the UK, owing to its rich industrial legacy, talented workforce and supportive ecosystem.

Glasgow is seeing an increase in the number of angel investors, venture capitalists, and other forms of startup finance. The Scottish Investment Bank, for example, is a government-sponsored fund that offers startup and growth funding to Scottish businesses. Other investors, such as the Scottish Investment Syndicate and the Scottish Co-Investment Fund, help fund companies in Glasgow and throughout Scotland.

11. Sheffield

Sheffield was named the greatest city in the world to start a business in 2022. The “Steel City,” which was formerly the hub of the UK’s steel industry, is becoming an excellent site for digital enterprises.

A robust ecosystem of start-ups has been made possible by government efforts, private sector investment, and partnerships with academic institutions. Sheffield provides a number of grants and funding options, including the ReNew Sheffield business grant, to assist new and small enterprises.

12. Liverpool

Known for its rich history, lively culture, and legendary music scene, Liverpool is a city that is tucked away along the banks of the River Mersey.

In recent times, another facet of Liverpool has garnered interest: its vibrant startup scene. Liverpool experienced a 10% increase in newly established businesses in 2023 compared to the year before, making it an excellent option for your new venture.

Apart from investment funds, Liverpool is also home to excellent incubators and accelerators that give entrepreneurs the tools they need to expand quickly. So if you are in search of business support programs in Liverpool, you could consider Barclays Eagle Labs, Baltic Ventures’ tech accelerator, or the blueorchid.

13. Belfast

Belfast is known for its innovation and entrepreneurship, and it currently has one of the fastest-growing science-based economy in the UK. 40 percent of Belfast’s startups are in the health tech and hardware sectors and the creation of technology parks and innovation districts, which act as centres for cooperation and research between the public sector, industry, and universities, is essential to this progress.

Belfast’s flourishing startup community is supported by several financial institutions, including:

1. The British Business Bank
2. Invest Northern Ireland
3. HBAN
4. Clarendon Fund Managers and
5. Whiterock Capital Partners

Additionally, a number of organisations that unite and link entrepreneurs, such Catalyst Inc. and the Northern Ireland Chamber of Commerce, provide excellent services to startups in Belfast.

14. Brighton

This city has garnered recognition for its robust economic conditions, exemplified by a thriving startup scene and an increasing quantity of small and medium-sized firms (SMEs) making substantial contributions to both the regional and national economies. Brighton’s broad infrastructure and support networks, which foster both new and established firms, are important contributors to the city’s success as a commercial hub.

Establishments like Wired Sussex, the Brighton Chamber, and creative workspaces like PLATF9RM are essential to building a cooperative corporate environment. These organisations provide a variety of services, such as funding options, mentorship programs, training courses, and networking events, all aimed at assisting firms at every step of their expansion.

15. Bristol

Bristol is a growing city for startups, with a strong tech scene and a welcoming local population. Bristol, which is well-known for its vibrant culture and varied economy, provides business owners with a special combination of chances and resources. With an amazing amount of co-working spaces, intriguing job prospects, and startup programs like the Bristol City grants, the city is a great place for small enterprises.

However, the average monthly rent is more compared to most of the locations on our list, so keep your prices and budget in mind when deciding on your startup location.

Final Thoughts

As you consider the best cities for your startup, remember that location is just one piece of the puzzle. Funding, market research, and legal compliance are other important variables that affect success. Here’s where Incorpuk  comes in handy.

Incorpuk has a team of knowledgeable business experts who can help you with the registration procedure, put you in touch with local investors, and provide advice on matters of law and compliance. Regardless of your location, we are committed to assisting entrepreneurs in becoming successful.

Always remember! The UK has something to offer any entrepreneur, whether you decide on Edinburgh, Bristol, or London.