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.
Birmingham ranked third in the rankings, and when it comes to sheer business activity, it leads the pack. The city boasts the highest number of business births (6,105) and employer births (5,825) in the study, making it a magnet for entrepreneurial ambition. But with that boom comes a dose of reality. Birmingham also records the highest number of business deaths (5,885), and a survival rate of 89%, which places it seventh worst for long-term business endurance.
Still, for ambitious entrepreneurs, Birmingham has a lot to offer. The office rent is relatively affordable at £1,772.22 per month, ranking eighth overall, and public transport costs are among the lowest, helping to ease day-to-day expenses. The city is also well-equipped with 75 coworking spaces, the second-highest in the country, giving startups and freelancers the flexibility they need to grow.
Where Birmingham struggles is in digital infrastructure. Its internet speed is just 41 Mbps, the second slowest in the rankings, and utility bills average £241.31 per month, making them among the more expensive. On the talent front, Birmingham has the largest working adult population, which is a huge plus for growing teams. However, this is tempered by the fact that it also has the highest unemployment rate, suggesting challenges in employment engagement or competition for quality roles.
Manchester and Leeds lead the way as the top two cities in England for small businesses. Manchester comes out on top thanks to a powerful mix of high business survival (92%), the highest number of coworking spaces (118), and a thriving startup scene with 3,630 new businesses launched each year. It offers strong digital infrastructure and access to talent, though rent and utility costs are on the higher side. Leeds, in second place, strikes a compelling balance between activity and affordability, boasting the second-highest number of business births (3,805) and a solid 91% survival rate. It also offers cheaper rent and utilities than Manchester, alongside 74 coworking spaces – though slower internet and higher transport costs are drawbacks.
Lincoln and York, ranked fourth and fifth respectively, shine with the highest business survival rates in the top ten and low closure numbers, offering calm, stable alternatives to busier hubs. Newcastle and Middlesbrough provide affordability and talent access, particularly through their large student populations, while Salford impresses with the highest survival rate (94%) despite steeper utility bills. Rounding out the top 10, Coventry and Leicester score well on cost-effectiveness and infrastructure, although Leicester lags behind in access to local talent.
On the other hand, Nuneaton and Bedworth, Hartlepool, Stockton-on-Tees, Bedford, and Kingston upon Hull ranked in the bottom five.