Cambridge second best UK city to start a new business

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), 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.
 
Technology hub Cambridge scored well on its low number of SME closures and strong digital connectivity. Other cities in the top 20 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 22nd, 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 32nd, 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, Product Manager 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 have the opportunity to 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.”
 
For more information visit https://informi.co.uk/
 

 
Notes
 
The data used in this study covers statistics from 2013 – 2015 and is collated from the following sources. Full data and infographics are available on request.
 
The research focuses on the UK’s 65 largest cities and towns, defined as primary urban areas.
 
·         NOMIS, mid-year population estimates
·         The Office of National Statistics demographic survey and Business Structure Database – SME start-ups, SME closures, SME density, high growth SMEs
·         Ofcom Connected Nations Report – Superfast broadband penetration rate
·         Land Registry/Scottish Neighborhood Statistics - House Prices
·         The Department of Energy and Climate Change - CO2 Emissions
·         Data collation – Centre for Cities
 
 
About Informi
 
·         Set up during 2016, Informi is designed to offer practical advice and support for new businesses to help them on the path to success. Informi has focused on the key things small business owners need to know and broken these up into easily digestible bitesize articles. They look at key personality traits, weighing up whether it’s the right option for the business and set expectations for what’s in store.
·         Informi guides small business owners through financial processes and legal considerations, and make sure their products or services are brought to market in a considered and effective manner.
·         Informi has been introduced by AAT (Association of Accounting Technicians), the UK’s leading qualification and professional body for vocational accountants, with over 130,000 members around the world.


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For more information or a high-res infographic please contact:
Adam Harwood/Jude Obi
0207 397 3026
[email protected]