While most people think of London as the country’s premier business hub, the high price of commercial property drives up wages for workers while the high cost of retail or office space raises overhead costs for businesses.
Let’s look at five other popular areas in the country to start a business in 2017 and the reasons why these locations made this list.
Brighton’s start-up business survival rate is nearly two-thirds. Its biggest selling point is being close to London without charging as much for rent or talent as London. It has a large, dense population that gives businesses a large consumer base for new services. Brighton offers all the advantages of London with its sixth best start-up ecosystem in the world in a 2015 report but without the high operating costs. And you can still access these business incubators, accelerators, advisors, and financiers while living in Brighton.
York has the highest survival rate for start-ups of any city in the country with roughly two-thirds of new start-ups surviving several years. It has a strong infrastructure, low crime rates, and a high number of university graduates. The greatest factors contributing to start-up survival are relatively low-cost office space and labour costs compared to other parts of the country.
Northampton has the highest employment rate of any city in the country. It also has the fourth highest start-up survival rate in the nation, just above sixty percent. The only consideration is the fact that it is not a major tech hub, so the start-ups that survive are focused on healthcare, industry, retail, and service.
Oxford, like many university towns, is a popular place to start businesses because it is already home to some of the best, brightest, and most entrepreneurial people in the country. The city also offers an excellent standard of living. The only downside is housing prices that are above the national average. However, Oxford’s research and development on campus have led to many small businesses started outside of campus, and they have an impressive 40% survival rate. Leeds has a similar business survival rate and a much larger student population. If you cannot afford Oxford, then Cambridge is a good, second choice for cutting edge technology start-ups; Cambridge’s advantage is being so close to London.
Edinburgh start-up survival rates hover around 55%, but it was listed the best city for start-ups in 2016 by the Guardian. One of the biggest draws is the fact that rents are a mere eighth of those in London. Wage rates are reasonable and far cheaper than London. The University of Edinburgh and the NHS have a joint venture to facilitate medical start-ups in particular. The fact that Edinburgh is home to two new billion pound start-ups is likely to attract new start-ups to the area. But online companies that help customers identify the best spin casino deals also benefit from strong local business support and the optimal financial climate.
Brighton offers proximity to London and its start-up ecosystem without a hefty a price tag. York has a high start-up survival rate due to its strong infrastructure, low costs, and a good labour market for start-ups. Northampton’s business culture is the best for non-tech start-ups in the country. Oxford is the best choice for new tech start-ups, while Edinburgh is the next hot spot for start-ups.