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Posted 2nd April 2025

Study Reveals the Best UK Cities to Start a New Business

A new study has revealed the best UK cities to start a new business, with Blackpool taking the top spot.

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study reveals the best uk cities to start a new business.


Study Reveals the Best UK Cities to Start a New Business
view of the city Blackpool
  • Blackpool tops the list with the highest percentage increase of new businesses between 2022 and 2023, at 7.24%.
  • Doncaster and Ipswich rank second and third, respectively.
  • Leicester had the greatest percentage decrease of new businesses, at -7.50% 

A new study has revealed the best UK cities to start a new business, with Blackpool taking the top spot. 

Experts at IT service software InvGate analysed data from the Office for National Statistics to find the number of registered businesses in UK cities in 2022 and 2023. The final ranking was determined by the cities with the greatest percentage increase of new businesses from 2022 to 2023. 

Blackpool tops the ranking, with a 7.24% increase in new businesses between 2022 and 2023. The city grew from 3,870 businesses in 2022 to 4,150 in 2023, for a total increase of 280 establishments. 125 of those newly registered businesses were in the transport and storage sector, and 110 were in the business administration and support services sector.  

In second place is Doncaster, with new businesses increasing by 2.23% between 2022 and 2023. Doncaster recorded a gain of 220 establishments, going from 9,870 in 2022 to 10,090 in 2023. 100 of those businesses were in the business administration and support services sector, and 55 were in the construction industry. 

Third in the ranking is Ipswich, with an increase of 2.06% in business establishments between 2022 and 2023. From 4,610 businesses in 2022, Ipswich climbed to 4,705 in 2023 for a total increase of 95 – 45 being in the construction industry and 30 being in the transport and storage sector.  

Peterborough places fourth, with a 1.82% increase in new businesses between 2022 and 2023. The city grew from 7,980 businesses in 2022 to 8,125 in 2023, for a total increase of 145 establishments. The wholesale sector saw an increase of 90 businesses, while the arts, entertainment and recreation industry gained 35. 

In fifth comes Newcastle upon Tyne, with new businesses increasing by 1.10% between 2022 and 2023. Newcastle recorded a gain of 95 establishments, going from 8,645 in 2022 to 8,740 in 2023. 35 of those businesses were in the construction industry, and another 25 were in the health sector. 

Salford comes in sixth, with an increase of 1.05% in business establishments between 2022 and 2023. From 10,910 businesses in 2022, Salford climbed to 11,025 in 2023, for a total increase of 115 – 70 of which were in the construction industry.  

Seventh on the list is Sheffield, with a 0.71% increase in new businesses between 2022 and 2023. The city grew from 16,920 businesses in 2022 to 17,040 in 2023, for a total increase of 120 establishments. The business administration and support services sector saw an increase of 25 businesses, while the property sector also gained 25. 

In eighth place is Nottingham,with new businesses increasing by 0.68% between 2022 and 2023. Nottingham recorded a gain of 65 establishments, going from 9,625 in 2022 to 9,690 in 2023. 30 of those businesses were in the transport and storage sector, and another 30 were in the construction industry. 

Plymouth ranks ninth, with an increase of 0.40% in business establishments between 2022 and 2023. From 6,300 businesses in 2022, Plymouth climbed to 6,325 in 2023, for a total increase of 25 – 15 of which were in the business administration and support services sector. 

Landing the tenth spot is Coventry, with a 0.39% increase in new businesses between 2022 and 2023. The city grew from 10,295 businesses in 2022 to 10,335 in 2023, for a total increase of 40 establishments. The accommodation and food services industry saw an increase of 30 businesses. 

Leicester had the largest decrease in businesses, at –7.50%. Leicester recorded a loss of 1,095 establishments, going from 14,595 in 2022 to 13,500 in 2023.


Business establishment increase by UK city – Top 10 ranking 

Rank City Number of businesses (2022) Number of businesses (2023) Business increase (2022-2023) Percentage increase 
1. Blackpool 3,870  4,150 280 7.24% 
2. Doncaster 9,870  10,090 220 2.23% 
3. Ipswich 4,610  4,705 95 2.06% 
4. Peterborough 7,980  8,125 145 1.82% 
5. Newcastle upon Tyne 8,645  8,740 95 1.10% 
6. Salford 10,910  11,025 115 1.05% 
7. Sheffield 16,920  17,040 120 0.71% 
8. Nottingham 9,625  9,690 65 0.68% 
9. Plymouth 6,300  6,325 25 0.40% 
10. Coventry 10,295  10,335 40 0.39% 

Ariel Gesto, CEO of InvGate, commented on the findings:  

“Choosing the right location is one of the most important factors for any startup. The top ten ranking could be an indication that smaller cities offer greater opportunities to build a business in a less crowded market. Rather than jumping straight in with London or Manchester, one could grow their establishment in a smaller city and then branch out to the more highly populated areas later down the line.” 

Categories: Business Advice, Business News, News


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