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Revealed: The Best City In The UK To Launch A Start-Up

Written by on 18th June 2018
Category: Business, Uncategorised

Going it alone and starting up your own business is no easy feat and many business owners find their dreams going up in smoke not long after things have got off the ground.

There are a number of factors that determine whether a start-up will be successful including luck and location.

We’ve broken down some of the UK’s biggest towns and cities based on four factors to determine which could be amongst the best to launch a start-up.

  • Five-Year Start-Up Survival Rate
  • Self-Employed Rate
  • Annual Salary (Full Time)
  • Average City Centre Office Rent per sq ft

Overall Top Ten

City/Town Startup Survival Rate (%) Self-Employed Rate (%) Annual Salary Average Office Rent
Oxford 48.6 9.2 £32,416 £22.00
Brighton 45.9 15 £30,274 £27.00
Huddersfield 45.1 11.7 £26,324 £13.50
Aldershot 46.5 13.5 £29,466 £27.50
Warrington 45.9 10.4 £28,036 £17.50
Reading 48.9 10.5 £32,234 £36.50
Bournemouth 41.4 12.7 £27,771 £16.00
Bristol 43.8 11.5 £30,362 £28.50
Northampton 45.9 8.8 £25,275 £14.50
Swindon 44.4 8.2 £28,847 £18.50

Overall Bottom Ten

City/Town Startup Survival Rate (%) Self-Employed Rate (%) Annual Salary Average Office Rent
Nottingham 41.2 7 £23,503 £19.50
Hull 41 5.8 £23,085 £16.00
Liverpool 38.6 7.4 £25,863 £21.50
Manchester 38.9 8.8 £25,000 £35.00
Doncaster 37.5 7.9 £24,748 £14.00
Glasgow 38.3 8.5 £27,121 £30.00
Stoke 38.2 8 £23,737 £12.50
Birmingham 39 9.1 £26,686 £32.50
Preston 40.2 7.2 £24,729 £10.00
Sunderland 41.2 6.6 £24,951 £12.50

Best Start-Up Survival Rates

If you fancy your chances as a start-up entrepreneur, you may want to consider one of the below, all of which have healthy survival rates across a five-year period.

City/Town Startup Survival Rate (%)
Aberdeen 53.5
Reading 48.9
York 48.9
Oxford 48.6
Cambridge 48.6

Lowest Start-Up Survival Rates

If, on the other hand, you’re considering launching a business in one of the below; you may want to consider the support network and opportunities which surround you; looking slightly further afield. Why? These 5 towns and cities have the lowest start-up survival rates in the UK.

City/Town Startup Survival Rate (%)
Dundee 37.3
Doncaster 37.5
Blackpool 37.6
Newport 38
Stoke 38.2

Highest Self-Employed Rate

If you’re wanting to ensure you’re surrounded by like-minded entrepreneurs in your local area, the following towns and cities have the highest percentage of self-employed in the UK. There’s a few surprises in there too!

City/Town Self-Employed Rate (%)
London 17.4
Brighton 15
Aldershot 13.5
Bournemouth 12.7
Huddersfield 11.7

Lowest Self-Employed Rate

If it’s peer-to-peer start-up support you’re looking for, however, you may be best off looking at other entrepreneurial hubs in your local region, based upon the self-employment rates.

City/Town Self-Employed Rate (%)
Burnley 5.6
Hull 5.8
Newport 6.3
Blackburn 6.6
Sunderland 6.6

Highest Annual Salary

Whilst you’ll hopefully be launching the next Unicorn start-up, it’s important to consider the local economy; understanding that higher average salaries typically mean businesses are able to afford to offer these (which typically means they’re successful).

City/Town Annual Salary
London £34,752
Oxford £32,416
Reading £32,234
Cambridge £32,214
Milton Keynes £31,205

Lowest Annual Salary

On the other hand, the following towns and cities have the lowest average annual salaries in the UK. This means you may be able to find cheaper labour in these regions.

City/Town Annual Salary
Leicester £21,782
Blackpool £22,862
Hull £23,085
Blackburn £23,203
Mansfield £23,378

Lowest Average Office Rent

Who wants to be paying over the odds for office space as a start-up? Here’s the average office rental per square foot in the cities with the lowest costs.

City/Town Average Office Rent
Preston £10.00
Middlesbrough £12.00
Stoke £12.50
Sunderland £12.50
Telford £13.50

Highest Average Office Rent

Here are the cities to watch out for with higher than average office rent payments…

City/Town Average Office Rent
London £70.00
Reading £36.50
Manchester £35.00
Cambridge £34.00
Birmingham £32.50

Sources:

https://www.ons.gov.uk/businessindustryandtrade/changestobusiness/businessbirthsdeathsandsurvivalrates
https://www.nomisweb.co.uk/reports/lmp/la/1946157405/subreports/ea_compared/report.aspx?