To answer that, researchers at Brandgility carried out a comprehensive study, ranking the best cities in England for small businesses. They evaluated 15 key factors grouped into four main categories: business activity, wellbeing, infrastructure, and talent. These included metrics such as business birth and survival rates, office rent, broadband speed, and access to skilled workers.
Each factor was weighted based on its impact on business success, then scored out of 100, with higher scores reflecting better conditions. The data was sourced from trusted organisations including the Office for National Statistics, Numbeo, Coworker, Broadband Genie, National Grid, and the Higher Education Statistics Agency.
Leeds takes second place in the rankings, offering a well-balanced environment for entrepreneurs looking to launch and grow their ventures. The city is bustling with activity, recording the second-highest number of business births (3,805) and employer births (3,550) in the study. However, it also logs the second-highest number of business deaths (3,785) – a sign of its competitive nature. Despite this, a 91% survival rate shows that many businesses are managing to find their footing and stay afloat.
When it comes to affordability, Leeds makes a strong case. It offers office rent at £1,772.22 per month, ranking ninth overall, and utility costs of £218.52, placing it on the more affordable end of the table. The city also boasts 74 coworking spaces, the third-highest in the study, giving small businesses and freelancers plenty of flexible workspace options.
Leeds doesn’t shine in every area, though. The city’s average internet speed of 60 Mbps doesn’t make the top ten, which could be a drawback for digital-first businesses. Public transport costs also lean towards the higher side at £80 per month, placing it sixth in that category. On the talent front, Leeds excels, with the second-largest working adult population, ensuring a steady pipeline of skilled professionals for growing companies.
Meanwhile, Manchester takes the top spot as the best city in England for small businesses, and it’s not hard to see why. With 3,630 business births annually, a strong 92% survival rate, and the highest number of coworking spaces (118), the city is buzzing with entrepreneurial activity. While costs like office rent (£1,997) and utilities (£240.54) are on the higher side, Manchester offers a healthy balance of infrastructure, talent, and opportunity. Its solid internet speeds (72 Mbps) and third-largest working population make it a thriving environment for both startups and scale-ups alike.
Birmingham rounds out the top three, leading in new business activity but also facing stiff competition and higher closure rates. Further down the list, Lincoln and York stand out for their exceptionally high business survival rates (93% and 93.9% respectively), while Newcastle and Middlesbrough offer affordability and talent pipelines, despite slower growth. Salford shines with the highest survival rate overall (94%), and both Coventry and Leicester make the cut for their low office rents and infrastructure, though Leicester trails in access to skilled workers.
On the other hand, Nuneaton and Bedworth, Hartlepool, Stockton-on-Tees, Bedford, and Kingston upon Hull ranked in the bottom five.