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Home Business

Bradford, Leicester and Coventry among the best places to start a business due to their strong growth factors

The FINANCIAL by The FINANCIAL
December 13, 2017
in Business
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Bradford, Leicester and Coventry among the best places to start a business due to their strong growth factors
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The FINANCIAL — Bradford, Leicester and Coventry are among the best cities in the UK in which to start a business, according to Barclays’ SME Growth Factors Index, with some of the best growth environments for small businesses to grow and flourish.

The Index, created by Barclays Business Banking, reflects the strength of 12 key growth factors such as business rate relief, infrastructure, broadband speed and labour productivity, which are essential to boosting business productivity and growth. Analysing the 20 largest cities by population size across the UK3, the index ranks each city based on the strength of each factor.

The cities with the top growth environments for UK start-ups are:

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Bradford
Leicester
Coventry
Edinburgh
Liverpool

Bradford, Leicester, and Coventry – the best growth environments for businesses

Bradford was ranked highest overall, with the best business rate relief, road infrastructure, number of job vacancies, cost of commercial rent, and business survival rate4. Leicester featured in second place thanks to its strong business survival rate, distance travelled to work and level of business rate relief. Coventry came in third place, with the highest net migration into the city.

Highest concentration of start-ups is currently in London, Birmingham and Leeds

Additional Barclays analysis5 reveals London, Birmingham and Leeds – areas with the highest populations – have seen the highest number of business start-ups over the last six years. In the capital, almost 577,000 start-up businesses have launched since 2012, while Birmingham has seen 45,000 new businesses, and there have been 26,400 in Leeds.

See also  Lockton Surprasses $4 Billion in FY2025 revenue

Yet when it comes to the strength of the growth factors in these cities, the results are less positive. London gives out some of the smallest amounts of business rate relief and has the highest commercial rent costs, appearing 12th on the overall list of 20 cities. Similarly, Birmingham features in 11th place, let down by its road infrastructure and poor quality of life, while Leeds ranks in 18th place, also as a result of its poor road infrastructure.

In comparison, just 16,800 of businesses have started in Bradford since 2012, 13,200 in Coventry, and 15,300 in Leicester – yet they have the strongest growth factors which are key to business productivity and growth.

Ian Rand, CEO of Barclays Business Banking, commented: “It’s really encouraging to see that so many areas offering growth potential are outside of London and the South East. We undertook this study because we support small companies right across the country, and are keen to help more people start and grow businesses wherever opportunities exist.

“Entrepreneurs need to consider the market for their particular company, but an environment that supports growth can make a real difference. The growth factors identified by the research can become even more valuable when small companies start looking to scale up and grow, which is something we particularly encourage.”

 

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