Being in the right place at the right time can make all the difference when you’re entering the world of entrepreneurship as a young person.
That’s why it’s so important to be in the city with the best talent, industry connections, potential market size, and access to support.
Here’s the UK’s leading company formation agent, Rapid Formations, with the five best cities in the UK for young entrepreneurs to start their business right now. Read on to see how your city fares in our ranking.
1. Newcastle: the opportunity all-rounder
While many think London is the go-to destination for new businesses, there are dozens of other UK cities offering brilliant benefits, often with smaller pools of competition. Newcastle is a great contender in this category, with a smaller population size than other cities, yet great potential for business growth, access to support, and an affordable cost of living.
In Simply Business’s 2024 index of the best place to start a business, Newcastle ranked top in terms of business growth and in the top three of average turnover. Its average monthly rent was significantly lower than many other UK cities, making it a great option for those leaving their jobs or full-time education and taking the leap into self-employed life. And when it comes to support running a new business, Newcastle hosts a great range of support through the North East Growth Hub.
2. London: home to the most UK startups
London is the largest and most internationally renowned business hub in the UK, making it home of the most startups, and not without reason. World-leading startup incubators such as Startupbootcamp and Seedcamp are based there, providing mentorship and funding to the best ideas. It is also particularly strong in industries such as fintech, creative media, and technology, making it an ideal location to network and collaborate with other ambitious business owners in these sectors.
However, London’s high costs can be a barrier for some young people. For example, renting office space and hiring staff is significantly more expensive in London compared to other UK cities, which is a significant barrier for those who have not yet built up a financial safety net.
Essentially, if you can afford to support yourself until you find funding or your business becomes profitable, London offers great opportunities and a vast talent pool, making it an attractive, if competitive, place to launch a business.
3. Manchester: the culture hotspot
Manchester’s office space and living costs are reasonable, yet the city still offers a strong economy, excellent transport links, and a steady stream of graduates from its world-class universities.
The Northern Powerhouse initiative has also brought increased government investment into the region, and it also offers access to startup incubators like the Manchester Science Park, providing support for early-stage businesses in life sciences, digital tech, advanced materials, cybersecurity, and computer engineering.
Beyond its business environment, Manchester is also known for its thriving cultural and social scene, making it an attractive place to live as well as work. The city has a young, diverse population, and its nightlife, arts, and music scenes make it a hotspot for networking and building business relationships.
4. Glasgow: Scotland’s entrepreneurial centre
In recent years, Glasgow has gained recognition as a welcoming home for new businesses. Glasgow’s status as a UNESCO City of Music, combined with its strong gaming and film production industries, make it full of opportunities for those in creative and media industries.
Another key advantage of Glasgow is its affordability compared to other major UK cities. Office space and living costs are significantly lower than in Edinburgh or London, allowing startups to operate with fewer financial pressures while still benefiting from a major urban economy. The city also offers regular networking events such as Glasgow Tech Meetup, which help connect entrepreneurs with investors and potential collaborators.
5. Brighton: a hub for ethical businesses
Brighton has a reputation as one of the UK’s most sustainable cities, reflected by the abundant demand for ethical businesses. It is home to a strong community of social enterprises and purpose-driven businesses, making it an attractive location for entrepreneurs who want to create a positive impact.
It has great connections to London and a thriving local economy. While office space and living costs can be high, many entrepreneurs find that the city’s creative, progressive energy and strong business networks make it an inspiring place to build a business.
Another major advantage of Brighton is the lifestyle it offers. Many people move there for its relaxed coastal environment and strong arts scene, making it a great for young people who want a fulfilling work-life balance.
Choosing the right city for your startup
Each of these cities offers something unique. While London remains the UK’s largest and most internationally renowned startup hub, there are great opportunities for young entrepreneurs across the country.
Before you move your life to a new city in pursuit of business opportunities, consider where your current industry connections and social circle live. Rather than starting afresh, staying where you are familiar and having access to support will make the journey significantly smoother and more enjoyable.
For support starting your business, turn to Rapid Formations for help reserving your desired company name, formally registering your company, filing your first confirmation statement, and more.
For example, did you know you can register your business in one place but run it from another? Thanks to Rapid Formations’ Registered Office Address Service, you can gain the prestige of a central London location, keep your home address private from the public register, and never miss an essential piece of mail or correspondence thanks to our in-house mail team – all for the low cost of £39 per year. Get in touch today to see how we can help.