The number of small businesses in the UK is on the rise and the statistics are there to prove it. At the start of 2017, there was a record number of 5.7 million private sector businesses. This is an increase of 197,000 since 2016 and a total increase of 2.2 million since 2000.
Small businesses accounted for 99.3 per cent of all private sector businesses at the start of 2017, of which 99.9 per cent were small or medium-sized enterprises (SMEs). The combined turnover for SMEs was £1.9 trillion, making up 51 per cent of all private sector turnover in the UK.
So if you’re thinking about getting into business or building your own start-up, the time is now.
But there is one consideration that you should pay particular attention to - the location. Whether you’re a new business owner or have owned a few businesses already, to ensure your business has a good chance of success you need to be a bit strategic on where exactly you are looking to launch your business. After all, it is about location, location, location.
So where is the best place in the UK to start a business?
After extensive research on the business demography, labour market and cost of living, a study undertaken by Payment Sense has revealed the top 5 places in the UK to start a business. Some of the results may in fact surprise you.
The fifth-top contender for new businesses is host of the Fringe Festival: Edinburgh. A strong rival of London’s strong economy and professional workforce, the city is a major player in financial service companies. The city’s five-year start-up survival rate was found to be 44.2 per cent.
With a stronghold in textiles and shoes, the cultural diverse city of Leicester is also a popular site for engineering and retail businesses. In this case, the five-year start-up survival rate was estimated to be 44.4 per cent.
Brighton & Hove
Not just a commuter hub for those working in London, the city of Brighton & Hove is also full of opportunity for businesses in tourism, retail and digital innovation. Here, the five-year start-up survival rate is 45.9 per cent.
One of the most famous cities of the UK where tourism is extremely viable, Bath is also known as a growing hub for software, publishing and retail businesses. This city’s five-year start-up survival rate was found to be 49.1 per cent.
And here is the number one contender for launching a start-up - Aberdeen. A city built on fishing, textiles, and shipbuilding industries, Aberdeen is Scotland’s leading business centre, especially for technology start-ups including electronics design and development. And finally, Aberdeen's five-year start-up survival rate was a whopping 53.5 per cent.
So, are you surprised?
Statistics continue to show that launching businesses in the UK is on a record high, with 657,790 start-ups registered with Companies House in 2016 alone. This is nearly 10 per cent more than the previous year.
At the end of the day, you need to launch your business in a convenient location that is also easy access to your customer base. The cities named above are areas with established business communities and a breadth of potential customers. On your end, you'll need to reach a balance and find your specialisation. Where will you start your business?