Study reveals Newcastle upon Tyne as the #4 best place in the UK to start your own business

A Sortlist study revealed that Newcastle Upon Tyne is the 4th best in the UK to start your own business.

The research analysed the UK biggest cities on factors such as average costs of office rental, electric prices, the population with the most qualifications and broadband speed to identify top UK cities with growing SME economies, and where in the country a new business has the highest chance of success.

Scotland’s capital city, Edinburgh, shines as the best city for start-ups in the UK. It has one of the lowest percentages of unskilled workers, with just 4.2 per cent of Edinburgh’s working-age population without any qualifications.

A fast connection is crucial for businesses right now as many transition to hybrid ways of working; Edinburgh has the second highest broadband download speed on this list at 115 megabits per second (Mbps).

Leeds ranks as the second-best city in the UK for start-ups. IT has one of the lowest electricity costs at 18.2 pence per kilowatt hour (p/kWh). New businesses will benefit from cheaper electricity to keep those ever-important early overheads down. Just 6.6 per cent of Leeds’ working-age population is without qualifications, meaning start-ups will have no trouble finding skilled workers to provide their services.

In third place as the best UK for start-ups is Kingston upon Hull. Kingston upon Hull has some of the absolute lowest office rental costs of £10.49 per square foot and a low electric cost of 18.2p/kWh. Kingston upon Hull proves to be on the cheaper side for start-ups, however, 11.1 per cent of the working population are without qualifications.

In 2020, Leicester saw 77,045 businesses fail, while almost 90,000 opened their doors for the first time. With a net increase in SMEs of 2,620, Leicester achieved a 15.63 per cent increase in active businesses, signalling the largest rise in entrepreneurship in the UK.

In Brighton, there was a net increase of 1,255 businesses, leading to the second largest increase in active businesses in the whole of the UK. Almost twice as many businesses were opened in 1,255 over 2020 as businesses which closed for good, suggesting a healthy business environment for start-ups.

Sunderland is our third largest city of entrepreneurs, despite seeing just 400 net business births over 2020. This 400 increase equates to a 5.9 per cent increase in active businesses in Sunderland. In 2020, 690 businesses closed down in Sunderland, making room for the 1,090 new businesses that were created.

By Mark Adair – Correspondent, Bdaily

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