- Torfaen tops the list with the highest percentage increase of new businesses between 2022 and 2023, at 11.74%.
- Blackpool and North Warwickshire rank second and third, respectively.
- Wyre Forest had the lowest percentage increase of new businesses, at –12.25%
A new study has revealed the best areas to start a new business in the UK, with Torfaen taking the top spot.
Experts at IT service software InvGate analysed data from the Office for National Statistics to find the number of registered businesses in local authorities across the UK in 2022 and 2023. The final ranking was determined by the local authorities with the greatest percentage increase of new businesses from 2022 to 2023.
Torfaen ranks at the top, with an 11.74% increase in new businesses between 2022 and 2023. The area grew from 2,215 businesses in 2022 to 2,475 in 2023 for a total increase of 260 establishments. An incredible 215 of those newly registered businesses were in the wholesale sector.
In second place is Blackpool, with new businesses increasing by 7.24% between 2022 and 2023. Blackpool recorded a gain of 280 establishments, going from 3,870 in 2022 to 4,150 in 2023. 125 of those businesses were in the transport and storage sector, and 110 were in the business administration and support services sector.
Third in the ranking is North Warwickshire, with an increase of 5.03% in business establishments between 2022 and 2023. From 2,785 businesses in 2022, North Warwickshire climbed to 2,925 in 2023 for a total increase of 140 – 55 being in the transport and storage sector and 35 being in the accommodation and food services sector.
Oldham places fourth, with a 3.98% increase in new businesses between 2022 and 2023. The area grew from 7,155 businesses in 2022 to 7,440 in 2023 for a total increase of 285 establishments. The transport and storage industry saw an increase of 65 businesses, while the construction industry gained 55.
In fifth comes North Kesteven, with new businesses increasing by 2.64% between 2022 and 2023. North Kesteven recorded a gain of 110 establishments, going from 4,160 in 2022 to 4,270 in 2023. 45 of those businesses were in the business administration and support services sector, and another 30 were in the transport and storage sector.
Ashfield comes in sixth, with an increase of 2.26% in business establishments between 2022 and 2023. From 3,100 businesses in 2022, Ashfield climbed to 3,170 in 2023 for a total increase of 70 – 55 of which were in the transport and storage sector.
Seventh on the list is Doncaster, with a 2.23% increase in new businesses between 2022 and 2023. The area grew from 9,870 businesses in 2022 to 10,090 in 2023 for a total increase of 220 establishments. The business administration and support services sector saw an increase of 100 businesses, while the construction industry gained 55.
In eighth place is Amber Valley, with new businesses increasing by 2.19% between 2022 and 2023. Amber Valley recorded a gain of 100 establishments, going from 4,570 in 2022 to 4,670 in 2023. 60 of those businesses were in the transport and storage sector, and another 35 were in the accommodation and food services sector.
Hackney ranks ninth, with an increase of 2.17% in business establishments between 2022 and 2023. From 24,405 businesses in 2022, Hackney climbed to 24,935 in 2023 for a total increase of 530 – 175 of which were in the property sector, with a further 90 being in the arts, entertainment and recreation industry.
Landing the tenth spot is Ipswich, with a 2.06% increase in new businesses between 2022 and 2023. The area grew from 4,610 businesses in 2022 to 4,705 in 2023 for a total increase of 95 establishments. The construction industry saw an increase of 45 businesses, while the transport and storage sector gained 30.
Wyre Forest had the lowest increase in businesses, at –12.25%. Wyre Forest recorded a loss of 580 establishments, going from 4,735 in 2022 to 4,155 in 2023.
Business establishment increase by UK local authority – Top 10 ranking
|
Rank |
Local authority |
Number of businesses (2022) |
Number of businesses (2023) |
Business increase (2022-2023) |
Percentage increase |
|
1. |
Torfaen |
2,215 |
2,475 |
260 |
11.74% |
|
2. |
Blackpool |
3,870 |
4,150 |
280 |
7.24% |
|
3. |
North Warwickshire |
2,785 |
2,925 |
140 |
5.03% |
|
4. |
Oldham |
7,155 |
7,440 |
285 |
3.98% |
|
5. |
North Kesteven |
4,160 |
4,270 |
110 |
2.64% |
|
6. |
Ashfield |
3,100 |
3,170 |
70 |
2.26% |
|
7. |
Doncaster |
9,870 |
10,090 |
220 |
2.23% |
|
8. |
Amber Valley |
4,570 |
4,670 |
100 |
2.19% |
|
9. |
Hackney |
24,405 |
24,935 |
530 |
2.17% |
|
10. |
Ipswich |
4,610 |
4,705 |
95 |
2.06% |
Ariel Gesto, CEO of InvGate, commented on the findings,
“Choosing the right location is one of the most important factors for any startup. The top ten ranking could be an indication that smaller cities offer greater opportunities to build a business in a less crowded market. Rather than jumping straight in with London or Manchester, one could grow their establishment in a smaller area and then branch out to the highly populated areas later down the line.”