Brighton tops Best Places to Start a New Business for fourth time in 2021

21 December 2021

Person taping up a box in a shop surrounded by laptop, tablet and boxes

Brighton has been named the "Best Place to Start a Small Business in the UK" for the fourth time in five years, in a comprehensive study complied by Informi, the website offering free practical advice and support for small businesses. The new study incorporates data from leading think tank Centre for Cities compiled prior to the ongoing Covid-19 (coronavirus) pandemic.

Brighton took the top spot in the annual study in 2016, with Ipswich winning the title in 2017. The 2019 study, which looked at the 2010s as a whole, saw Reading triumph.

This year’s study examined data from the last financial year, focusing on eight different criteria across the 63 largest towns and cities in the UK to determine where had the best environment for small and medium-sized businesses to succeed. Categories included the number of new businesses, current business stock, pollution levels and digital connectivity.

Brighton performed strongly across the board and was in the top three for the number of new start-ups, overall business stock and low pollution levels. Cambridge maintained its second place position from 2020 in this year’s list, followed by Northampton which rose three places to third.

Previous winner Ipswich performed well, rising by four places on the previous survey to take fourth place, with Oxford and Exeter also climbing the chart to break into the top 10.

Position 2021LocationChange since 2020
1BrightonNo change
2CambridgeNo change
3Northampton+3
4Ipswich+4
5Reading-1
6Southampton-1
7Edinburgh-4
8Oxford+4
9LondonNo change
10Exeter+4

Steven Drew, spokesperson for Informi, said:

2021 has been a difficult year for SMEs throughout the UK due to challenges posed by the pandemic and the impact of Brexit. However, what this data shows is that across the country, there are real opportunities for SMEs to not only weather the current economic storm but form the cornerstone of the UK’s economic recovery through creating jobs, bringing prosperity to regions and attracting external investment. Over the past five years, Brighton has shown that it is welcoming to entrepreneurs, supports local businesses to thrive and offers a great example to other towns and cities on how they can do the same.

However, whilst there is plenty that can be done at a businesses, including shopping locally, it’s also key that they get the help they need from elsewhere. With the data showing a rise in business closures – even prior to the impact of the pandemic – it’s vital that the government commits to its ‘levelling up’ agenda by ensuring that areas all across the UK are enabled to help small businesses in their region grow and succeed.

Best places to start a business in the UK 2021: Full List

  1. Brighton

  2. Cambridge

  3. Northampton

  4. Ipswich

  5. Reading

  6. Southampton

  7. Edinburgh

  8. Oxford

  9. London

  10. Exeter

  11. Bristol

  12. York

  13. Bournemouth

  14. Chatham

  15. Portsmouth

  16. Luton

  17. Aldershot

  18. Liverpool

  19. Worthing

  20. Aberdeen

  21. Slough

  22. Wigan

  23. Leicester

  24. Preston

  25. Cardiff

  26. Glasgow

  27. Gloucester

  28. Leeds

  29. Belfast

  30. Dundee

  31. Swindon

  32. Birkenhead

  33. Plymouth

  34. Southend

  35. Hull

  36. Warrington

  37. Derby

  38. Manchester

  39. Coventry

  40. Birmingham

  41. Milton Keynes

  42. Telford

  43. Nottingham

  44. Crawley

  45. Huddersfield

  46. Peterborough

  47. Blackburn

  48. Bradford

  49. Blackpool

  50. Basildon

  51. Burnley

  52. Norwich

  53. Sheffield

  54. Mansfield

  55. Newcastle

  56. Middlesbrough

  57. Doncaster

  58. Swansea

  59. Stoke

  60. Sunderland

  61. Barnsley

  62. Wakefield

  63. Newport

Informi offers a wealth of information for anyone looking to start and run a small business, including articles and resources such as a free UK business plan template to help you develop and grow your business. For more information please visit informi.co.uk.