Leicester named in top 10 best cities in England to start a small business, study finds

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.

Leicester ranks tenth, offering a solid mix of affordability and business activity, making it a practical choice for startups and small enterprises. The city sees 1,850 new business births annually, placing it ninth overall, and records 1,700 employer births, the seventh highest in the study – showing a healthy appetite for entrepreneurship. However, it also ranks 11th for business deaths (1,745) and has a 91% business survival rate, which, while respectable, sits in the bottom 20 overall, suggesting stiffer competition or more volatile business conditions.

Where Leicester really makes an impact is on affordability and flexible workspace. Office rent averages £1,266.67 per month, the lowest in the top ten, making it highly attractive for businesses looking to cut overheads. Utility costs are also reasonable at £206, placing it 13th cheapest, and the city has a generous 24 coworking locations, ranking seventh highest in the study – ideal for remote teams and freelancers. Internet speed clocks in at 56 Mbps, which puts Leicester in the top 20 fastest, and the working adult population ranks seventh, offering a robust labour pool. However, the unemployment rate is 6.7%, the third highest in the study, which may indicate challenges in local employment engagement or economic conditions.

Meanwhile, Manchester leads the pack with a thriving entrepreneurial scene, a 92% survival rate, and the most coworking spaces (118), though costs like rent and utilities are on the higher side. Leeds, in second place, offers a compelling balance of high business activity and affordability, with the second-highest number of business and employer births, and competitive rates for rent and utilities. Birmingham, ranked third, is the busiest in terms of new businesses, but also sees the highest closure rate, making it a high-opportunity, high-risk environment. Lincoln (4th) and York (5th) shine in stability, with business survival rates above 93%, low business deaths, and manageable costs, appealing to entrepreneurs focused on long-term sustainability rather than fast-paced growth.

Further down the rankings, Newcastle upon Tyne (6th) offers a strong mix of affordability and access to young talent, with one of the highest student populations per capita, though slower internet and a higher unemployment rate temper its appeal. Middlesbrough (7th) excels in affordability, boasting the lowest office rent (£750) and a high 93.8% survival rate, but is held back by high utility costs and limited infrastructure. Salford (8th) stands out with the highest business survival rate (94%) in the study and a rich pool of students, despite having some of the highest utility costs and limited coworking options. Coventry (9th) rounds out the top 10 with a practical blend of low utility costs, solid internet speeds, and a strong student population – though it does see a relatively low survival rate (88%) and higher unemployment.

On the other hand, Nuneaton and Bedworth, Hartlepool, Stockton-on-Tees, Bedford, and Kingston upon Hull ranked in the bottom five.