London has long been viewed as the beating heart of the UK’s business community and, therefore a prime region for opportunities in business. As the home of Parliament, the financial services sector, and multiple head offices, the Greater London region is impossible to ignore.
Yet despite its size and population, London doesn’t top every business opportunity list. By breaking our research down into 10 specific themes, other cities get a chance to shine too. And some of the findings may surprise you.
Digital infrastructure
The East Yorkshire city of Hull offers the greatest business opportunity when it comes to broadband and digital investment. After reviewing the rate of megabits per second (Mbps), Hull achieves a score of 9.
Fast broadband and digital services can drive efficiencies for businesses. Reliable connections can reduce delays in completing orders, enable you to manage your business banking on the go and ensure smooth virtual meetings. This could make it one of the best cities for for start-ups, as faster connections and tech can help keep operations streamlined, and services moving.
Edinburgh follows Hull (scoring 7), while the Greater London region only scores 6.
At the other end of the scale, Glasgow, Stoke, Newcastle, Cardiff, Leicester, Sheffield and Manchester still have work to do on boosting their digital offering (all scoring 4).
Qualifications and access to talent
Edinburgh is the top performer when comparing the proportion of the working-age population with NVQ level 4 qualifications or above. The Scottish capital posts a score of 9, narrowly beating the Greater London region (8). Glasgow, Bristol and Belfast follow (all on 7).
However, London is the clear winner when combining access to talent, nearby universities and NVQ level 4 qualifications. Its score of 10 is followed by Birmingham (7), suggesting that size does sometimes matter.
A talented local workforce may prove vital to startups with expansion plans. After all, having skilled, well-qualified professionals right on your doorstep should make recruitment easier. Things may prove trickier if you’re forced to cast the net wider.
Support for green spaces
Of course, business life isn’t all about accessing digital infrastructure and qualifications. Green space is another valuable part of the urban fabric.
On the one hand, it could make your city – and company – more attractive when recruiting. On the other, it might improve the mental wellbeing of both you and your workforce.
When reviewing green space provisions per person, Bristol, Belfast, Newcastle and Stoke are out in front, all scoring 10.
The Greater London region joins Manchester, Leicester, Coventry, Bradford, Hull and Southampton at the bottom of the pack for green space. All these cities score 3.
Funding for green initiatives
Green initiatives also play an important role in ensuring the sustainability of our cities. Scottish locations top the table for the number of green grants handed out. Both Glasgow and Edinburgh earn a score of 7.
Green funding can make all the difference if sustainability is at the heart of your business. It could help get new products and services off the ground. Or simply show staff and investors that you’re serious about the planet’s future.
Belfast (3) and Cardiff (4) have the lowest scores in this category. The Greater London region appears in the middle of the pack, with a score of 6.
Gross Value Added (GVA)
GVA measures the economic contribution of a particular city. Our research looks at the amount contributed per hour, with the Greater London region achieving the best score (9). This isn’t unexpected, given the importance of the UK capital to the wider economy.
Edinburgh (7), Manchester, Coventry, Cardiff and Southampton (all 6) also score relatively well here.
In contrast, Bradford, Stoke and Hull have the lowest GVA rates in our study. These three cities each score 4.
GVA can be a useful way to measure overall activity within a city. It could give company owners a general flavour of each location’s economic performance.
Backing for start-ups
The Greater London region also stands out as one of the best cities for start-ups. [CW4]
It scores 10 for the total number of start-ups within its innovation ecosystem. But other cities aren’t too far behind. Southampton achieves a score of 9, while the north-west giants Liverpool and Manchester both score 8.
On a related note, the Greater London region comes first for business starts (per 10,000 members of the population). Its score of 10 is followed by Birmingham, Manchester, Leicester and Cardiff (all on 7).
Comparing start-up rates may reveal the cities with the strongest support networks for brand-new ventures. While not every start-up is guaranteed to succeed, it’s a way of measuring the places where entrepreneurs are clustered.
Business closures
Nobody wants to think about their business shutting its doors. Yet closure rates might prove a useful metric when weighing up a city’s business opportunities.
High closure rates could point to strong competition, a shortage of customers or significant costs, for example. Whereas lower rates may suggest untapped potential.
Our research team looked at closures per 10,000 members of the population. Hull and Nottingham appear to benefit from the fewest closures, both scoring 8.
Things appear trickier in Leeds, Manchester and Southampton (all on 4), and Leicester (3). And closures are at their highest level in the Greater London region (1).
‘New economy’ firms
Businesses in the new economy are classed as being cutting-edge. They can offer innovative technology with the potential to support economic growth and boost productivity.
When adding up new economy firms (per 10,000 members of the working-age population), the Greater London region comes top. Its score of 9 is closely followed by Bristol and Cardiff (both on 8). Liverpool has the weakest score here, with a reading of 3.
The number of new economy firms can show how forward-thinking and creative a particular place is. Some cities may be hotbeds for exciting technologies, for example, which could make them great cities for startups. While others could specialise in fast-moving sectors like fintech, eCommerce or digital marketing.
Earning power
Employee earnings can have a significant impact on business budgets. And staff may expect more money in cities with higher averages. Freelancers and the self-employed may consider the earning potential in different cities when choosing a location and setting prices before opening a business bank account.[CW5]
When it comes to average weekly workplace earnings, the Greater London region (7), and Bristol, Edinburgh, Coventry and Derby (all on 6) are at the top of the list.
Leicester, Hull and Stoke appear towards the bottom, all scoring 4.
House prices
Our final metric considers average house prices in each city. After all, if you’re going to move somewhere new, you’ll want to know the state of the local property market.
High house prices could take a bigger bite out of your earnings – and potentially impact employee wage demands. Meanwhile, cities with lower prices might make things more cost-effective.
The most affordable cities for property are Liverpool, Belfast, Hull and Stoke (all scoring 8).
However, house prices are higher in Edinburgh, Cardiff and Southampton (all on 4), and Bristol (3). And they reach their peak in the Greater London region (1).
