Most Entrepreneurial UK Cities in 2024

We analysed the startup-to-population ratio across the UK’s largest cities to reveal the country’s most entrepreneurial locations.

• London and Cardiff lead the pack with an impressive 1 entrepreneur in every 25 people, according to our research
• Manchester has the lowest entrepreneurial activity of the cities analysed, with 1 entrepreneur in every 237 people
• Ecommerce is the leading industry across most cities. Other prominent industries include property, commercial transport, business support and construction
• Most entrepreneurs are aged between 31-40 years old, followed by the 41-50 age group, but there is an impressive number of entrepreneurs under 30 in Cardiff, London and Birmingham

Entrepreneurship in the UK is alive and well, with people consistently taking the plunge and starting new businesses as side hustles or full-time ventures. More than 1 million new businesses have been launched by aspiring entrepreneurs across the country since 2022.

Research from Enterprise Nation revealed 35% of Brits said they want to start a business in 2024. According to our analysis of Companies House data, around 98,882 businesses have been launched in the UK so far this year – with 862,587 launched in 2023 and 526,970 in 2022. To find the locations with the highest Entrepreneurial Index, we divided the number of companies launched in the last two years by the population in the UK’s largest cities, then looked at industry types and the average ages of entrepreneurs.

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London and Cardiff Lead: 1 in 25 People are Entrepreneurs

Entrepreneurship in London and Cardiff is strong, with an Entrepreneurial Index of 25, meaning there’s an entrepreneur in every 25 people.

In both cities, ecommerce and property industries are the most common verticals for new startups.

In London, almost 400,000 new businesses have been launched in the last two years, with 30% of entrepreneurs in the 31-40 age group and an impressive 36% under the age of 30, pointing to a thriving entrepreneurial spirit among the capital’s young business leaders.

London’s flexible office spaces, world-class infrastructure, and entrepreneurial support consistently place it at the top of the business leaderboard.

Cardiff is Home to the Youngest Entrepreneurs in the Country, Followed by Birmingham  

In Cardiff, almost 20,000 new businesses have been launched in the last two years, with 30% of entrepreneurs in the 31-40 age group and 39% under 30—the highest percentage of all the cities analysed.

According to ONS data last year, Cardiff was named the best region in the UK to start a business. The data looked at business opening and closing rates across the country.

In Birmingham, with an entrepreneur in every 76 people, 32% of entrepreneurs are under the age of 30, initiatives like the Birmingham Enterprise Community help connect innovative minds, and over 35,000 new businesses have been launched in the region in the last two years.  

Why are People Starting Their Own Businesses in 2024?

• 38% – make extra cash out of a skill or hobby
• 34% – top-up income to stay on top of rising costs
• 24% – become my own boss
• 2% – avoid job insecurity

According to our analysis, more businesses were registered on January 16^th than any other day of the year, with 4,870 companies launched, making it the most popular day of the year to start a business.

If You’re Thinking of Starting a Business

Here are a few simple steps to help you get started:

• Conduct Market Research: Identify your target audience, analyse market demand, and study competitors. This helps validate your business idea and shapes your offerings to meet market needs effectively.

• Develop a Business Plan: Create a document outlining your business goals, strategies, financial projections, and marketing plans. This document serves as a roadmap and is essential when seeking investment or loans.

• Choose and Register Your Business Structure: Decide whether you will operate as a sole trader, partnership, or limited company. Register with Companies House if needed and ensure you comply with legal and tax requirements, including VAT registration if applicable.

• Secure Flexible Office Space: To reduce initial costs, consider coworking spaces or serviced offices. Flexible office spaces offer scalability, allowing your business to grow without the burden of long-term leases.

• Set Up a Business Bank Account: Separate personal and business finances to streamline accounting and tax processes. Choose a bank that offers good support and services for startups.

• Seek Funding: Explore funding options such as loans, grants, or investors to ensure you have the necessary capital to start and sustain your business.

• Build an Online Presence: Develop a professional website and establish social media profiles to increase visibility and attract customers.

• Network and Seek Mentorship: Connect with other entrepreneurs and seek advice from mentors to gain insights and guidance.