Business & Marketing

The best UK cities for business start-ups in 2025

February 7, 2025

Starting a business is an exciting but challenging venture, and location can play a crucial role in success. The right city can provide access to a rich pool of talent, a thriving economy, and affordable operating costs. On the other hand, the wrong choice may present critical obstacles like high overheads or limited customer demand.

To help entrepreneurs make informed decisions, we’ve analysed the best best UK cities for business start-ups in 2025. Our rankings consider key factors such as business survival rates, local GDP, employment levels and rental costs for those planning to set up physical premises. The findings reveal some surprising frontrunners, alongside cities where businesses may face tougher conditions.

The top 10 cities for business start-ups

Based on our research, York tops the list of the best cities for start-ups in 2025. With a five-year business survival rate of 45.1%, the highest in our study, and a solid local GDP of £8.35 billion, York offers a strong foundation for new ventures. The city’s relatively low unemployment rate of 1.7% suggests a stable workforce, though it may also lead to increased competition for skilled talent. Retail rental costs average £2.48 per square foot per month, making it a viable option for those requiring commercial space.

Bristol ranks second, with a 43.9% survival rate and a GDP of £21.1 billion. The city offers a stable economy and a business-friendly environment. With an unemployment rate of 2.8% and average rental costs of £1.68 per square foot per month, Bristol remains an attractive destination for start-ups.

Edinburgh takes third place with a 38.6% survival rate and a GDP of £31.8 billion. Its relatively low unemployment rate of 2.4% and rental costs of £1.99 per square foot per month make it a promising location for entrepreneurs.

Top 10 cities for business start-ups in 2025

Rank	Metric	% of new businesses from 2018 with a 5 year survival rate	GDP of City (GBP, millions)	% of people claiming unemployment related benefits	Average cost p/sqft of a rental retail space (per month)	Total Index Score
1	York	45.1%	£8,351	1.7%	£2.48	7.63
2	Bristol	43.9%	£21,098	2.8%	£1.68	7.32
3	Edinburgh	38.6%	£31,802	2.4%	£1.99	7.05
4	Plymouth	43.9%	£7,922	3.3%	£1.53	6.90
5	Aberdeen	39.7%	£20,033	3.2%	£1.61	6.67
6	Sheffield	44.6%	£17,494	4.3%	£2.00	6.66
7	Cardiff	41.8%	£17,839	3.8%	£1.74	6.59
8	Norwich	40.5%	£12,415	3.6%	£1.90	6.42
9	Leeds	38.5%	£34,716	4.4%	£2.09	6.22
10	Glasgow	36.2%	£28,439	4.0%	£1.76	6.06

Business survival rates: The best and worst performers

York also leads the rankings for business survival, with Cambridge (45.0%) and Dundee (42.7%) close behind. These locations offer a stable economic environment and strong infrastructure, putting them among the best UK cities for business start-ups.

Top 10 cities for business survival rates

Rank	City	% of new businesses from 2018 with a 5-year survival rate
1	York	45.1%
2	Cambridge	45.0%
3	Sheffield	44.6%
4	Bristol	43.9%
5	Plymouth	43.9%
6	Dundee	42.7%
7	Oxford	41.9%
8	Cardiff	41.8%
9	Norwich	40.5%
10	Aberdeen	39.7%

At the other end of the scale, Birmingham ranks lowest, with just 25.0% of businesses surviving their first five years. Manchester and Liverpool also report low survival rates, despite their status as major business hubs. High competition, operating costs, and economic conditions may contribute to the challenges faced by start-ups in these cities.

Bottom 10 cities for business survival rates

Rank	City	% of new businesses from 2018 with a 5-year survival rate
1	Birmingham	25.0%
2	Manchester	28.9%
3	Liverpool	29.4%
4	Swansea	29.7%
5	Brighton & Hove	31.0%
6	London	31.5%
7	Southampton	33.1%
8	Nottingham	33.7%
9	Milton Keynes	33.8%
10	Portsmouth	36.0%

Expert insight: Standing out in 2025

Greg Ralph, Sales & Customer Success Director at Solopress, shares his thoughts on the importance of location in business success:

“Location can make or break a business. While entrepreneurs quite rightly invest time and passion into their logo, branding, and product offering, choosing a place where their business can thrive is just as crucial.

For online businesses, keeping overheads low might be the priority, but planning for future recruitment and infrastructure needs is essential too. For businesses that rely on in-person interactions, choosing the right location is key—whether that means filling a gap in the market or positioning a business where the target audience is already engaged.”

Once a business knows where it will operate, Solopress is here to help with high-quality Business Stationery, branding and marketing collateral that ensures a professional and memorable presence.

Making the right move for your 2025 start-up

Entrepreneurs in 2025 have a wealth of options when choosing where to set up their business. Cities like York, Cambridge, and Bristol provide strong support networks and high business survival rates, while larger trade hubs such as London and Manchester offer significant opportunities alongside greater competition. By considering factors such as talent availability, economic conditions, and operating costs, new businesses can make informed decisions that set them up for long-term success,