The best places in the UK to start your business
From bold ideas to thriving enterprises, entrepreneurs play a vital role in sparking growth, creating jobs, and pushing boundaries.
Recognising the vital role entrepreneurs play in driving economic growth, insolvency practitioners Liquidation Centre set out to find the best UK regions for launching new business ventures.
Key findings:
Leicester is the best place in the UK to start a business, with companies seeing the highest year-on-year growth between 2018 and 2023, at 95.3%.
In second place, Central Bedfordshire recorded an average 68.1% annual rise in business growth.
Caerphilly in Wales saw an 18% decline, making it the worst place in the UK to start a business.
Hertfordshire recorded the most business registrations in the top 10, averaging 9,080 between 2018 and 2023.
Five areas in Wales rank among the top 10 worst places for business growth in the UK.
Top Ten UK Regions With The Fastest New Business Growth
Rank | Region | Number of business registrations (Avg over 2018 – 2023) | Average business growth over the years. (Avg of Yoy change) |
1. | Leicester | 4150 | 95.3% |
2. | Central Bedfordshire | 2160 | 68.1% |
3. | Hertfordshire | 9080 | 30.3% |
4. | Rhondda Cynon Taf | 1155 | 28.3% |
5. | Southampton | 1835 | 27% |
6. | Rutland | 196 | 25.6% |
7. | Hampshire | 7750 | 22.7% |
8. | Torfaen | 340 | 20.6% |
9. | Cambridgeshire | 3290 | 15.6% |
10. | Northamptonshire | 5593 | 14.7% |
A full copy of the data is available here
Leicester Is The Best Place In the UK To Start Your New Business
The study can reveal that new businesses in Leicester have the highest year on year average growth of 95.3%. Leicester is one of three East Midland areas to place in the top ten, with Rutland and Northamptonshire also showcasing upward trends and sustainable growth for new businesses.
Central Bedfordshire is the second best area for entrepreneurs to start their business, with 2,160 business registrations and an average 68.1% growth year on year,
Hertfordshire is the third best place in the UK to start a business, boasting 9,080 registrations between 2018- 2023 (the third highest overall, just behind inner and outer London) and 30.3% year-on-year business growth.
Rhondda Cynon Taf in South Wales ranks fourth as the best place in the UK to start a business. With 1,155 new registrations and 28.3% average growth, it presents a strong opportunity for aspiring entrepreneurs.
Southampton rounds off the top five, with an average business growth rate of 27%.
Top Five UK Regions With The Slowest New Business Growth
Rank | Region | Number of business registrations (Avg over 2018 – 2023) | Average business growth over the years. (Avg of Yoy change) |
1. | Caerphilly | 634 | -18% |
2. | Darlington | 480 | -17.5% |
3. | Isles of Scilly | 11 | -12.5% |
4. | Newport | 767 | -11.5% |
5. | Pembrokeshire | 515 | -9.7% |
A full copy of the data is available here
Entrepreneurs in Caerphilly See the Smallest Year-on-Year Business Growth
In South Wales, Caerphilly ranks as one of the UK’s toughest places to start a business. Between 2018 and 2023 it saw 634 new registrations and an average year-on-year decline of 18%. Caerphilly joins fellow Welsh areas Newport, Pembrokeshire, Swansea and Cardiff in the top 10 lowest-growth spots for entrepreneurs.