The UK has always been a popular place to start a business. With a high quality of life, a stable economy and home to some of the world’s leading talent, it’s easy to see why. Each city in the UK has a specialised focus that will allow you to focus on specific niches for the best chance of success. For example, some cities like London and Manchester are hubs for digital and creative businesses, whereas independent shops seem to thrive more in Edinburgh.
If you are considering setting up a business in the UK, the next question you need to answer is, which UK city should you choose? In this article, we’ll cover 4 of the most popular options.
London
London is the most obvious and most well-known option in terms of places to start a business in the UK. It’s the biggest city on the island by quite some distance, and that means businesses get access to a wider talent pool and also benefit from more opportunities in terms of networking and access to funding.
Businesses in London may also benefit from the city’s enormous tourist footfall. In 2024, only Bangkok and Istanbul attracted more tourists than London, so it’s worth considering if this is something that could impact your sales. For instance, restaurants, cafes and other businesses with a physical location stand to benefit most from London’s influx of visitors.
Manchester
Manchester is consistently closing the gap on London in terms of the best UK city to start a business. Manchester-based businesses benefit from far lower costs compared to London, but that doesn’t mean the northern city offers any less in terms of opportunities.
In fact, Manchester is quickly developing a reputation as the UK’s creative capital, home to many of the country’s top marketing and creative agencies. Whether you are looking for a leading SEO agency, such as Red Cow Media, or a leading web design agency like BGN, Manchester has you covered.
Manchester has several reputable universities, and many graduates find they cannot leave the city after studying, which is great for new businesses looking to find young talent. But the city’s vibrancy also draws young people from all over the country, and even abroad, who are looking to relocate, so you shouldn’t have a problem surrounding yourself with a young, hungry, diverse workforce.
Edinburgh
When starting a business in the UK, most startups look to England, but don’t discount major cities in Scotland and Wales. In particular, Edinburgh offers huge advantages and has developed a reputation as a UK innovation hub, which makes the city a great place to start a tech company.
It’s also home to a leading university, the University of Edinburgh, which again plays into the hands of anyone starting a tech-related or innovative business. Like London, Edinburgh also brings in plenty of tourists looking to explore the city’s rich history and culture, which is ideal for those building a brand in the hospitality industry, for example.
Birmingham
Birmingham is the second largest UK city in terms of population, with only London possessing a greater population. But like the other cities on this list, operating in Birmingham will greatly reduce your rent and other overheads compared to London.
In recent years, Birmingham has spiked in terms of business, and ‘Brum’, as it’s known to locals, is growing as a business city. While you’ll have access to business support and various incubators, it also provides the benefit of being perfectly located, situated in the centre of England and within commutable distance of both London in the south and Manchester in the north.
Bristol
Bristol is home to the creative, tech and environmental sectors, which not only provide potential gaps for your business to emerge but it a clear hub for fields that thrive in Bristol. A southern city that has a strong economy, which encourages those who seek a high-quality life to live here, which overall feeds the economy. It offers a plethora of fresh talent as well, as home to a very popular University which brings newly qualified graduates to Bristol, therefore you are not short on new talent to adopt into your company.
Bristol also offers a distinct and creative community as mentioned before, which means there are more accessible cost bases than in London, and continues to maintain a strong infrastructure and international links, which makes it a very attractive spot.
It’s key to consider that with a thriving economic landscape, it has created a high demand for high-quality, city centre office spaces, which can lead to high rents and a competitive market for a new company. However, it’s a great spot to begin your journey.
Final Thoughts
There are many things to consider when deciding where to start a business in the UK, especially due to the political and economic landscape, so it’s important to consider what’s most beneficial to your business. For tech startups, funding opportunities and access to talent may be the most important factors to consider. While hospitality businesses will benefit more from a larger population with greater footfall.
