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.
Newcastle upon Tyne lands in sixth place in the rankings, offering a solid environment for small businesses that prioritise affordability and access to a young, educated workforce. While it’s not one of the most active startup hubs in terms of volume, with 1,180 business births per year, just outside the top 20, and 1,120 business deaths placing it 24th overall, the city makes up for it with a 90% survival rate, giving business owners a reassuring sense of staying power.
Newcastle shines particularly bright when it comes to talent. With 3,111 students per 10,000 residents, it has the second-highest student population in the study, making it ideal for businesses looking to tap into graduate talent or hire young, adaptable staff. The city’s employer births (1,090) rank 19th, showing moderate but stable business activity.
From a cost perspective, Newcastle is highly attractive. Monthly rent averages £1,414.29, which is relatively low among top-ranked cities, and utility bills sit at £206, placing it among the cheapest in the study. There are just nine coworking spaces, a middle-of-the-pack offering, but sufficient for many smaller teams or solo founders. That said, internet speed is a weak point, with Newcastle posting the fourth slowest average at 45 Mbps, which may be a limitation for digital-heavy ventures.
The city’s unemployment rate of 5.3% is in the top ten highest, which could indicate a competitive job market or underutilised workforce, depending on your perspective.
Manchester, Leeds, Birmingham, Lincoln, and York make up the top five cities for small businesses in England, each excelling in different areas. Manchester leads the pack with a strong startup culture, the highest number of coworking spaces (118), and a healthy 92% business survival rate, although it comes with relatively high costs. Leeds follows closely with the second-highest number of business births (3,805) and solid affordability across rent, utilities, and infrastructure, though it lags in internet speed.
Birmingham, ranking third, sees the most business activity overall, but also experiences the highest closure rate, making it a city of big risks and big rewards. Meanwhile, Lincoln and York stand out for their exceptional business stability – both boasting survival rates above 93% – with Lincoln offering low closure rates and York benefiting from the lowest utility costs (£149.89) and lowest unemployment rate (2.5%).
Further down the rankings, Middlesbrough (7th) is the most affordable city in terms of office rent (£750) and also maintains an impressive 93.8% survival rate, though it suffers from limited infrastructure and slow internet. Salford (8th) stands out for its top-ranking survival rate of 94%, despite higher utility costs and only 11 coworking locations.
Coventry (9th) is a well-rounded option, with low utility bills, decent infrastructure, and internet speeds, making it attractive for cost-conscious entrepreneurs. Leicester, in 10th place, offers the lowest office rent (£1,266.67) in the top ten and a 91% survival rate, but faces challenges when it comes to access to talent, with the fewest nearby universities per capita.
These cities collectively reflect the diversity of England’s business landscape – from high-growth powerhouses to quietly resilient towns – showing that success can look very different depending on what a small business needs most.
On the other hand, Nuneaton and Bedworth, Hartlepool, Stockton-on-Tees, Bedford, and Kingston upon Hull ranked in the bottom five.