In this context, recent research by Simply Business, a small business insurer, has identified the leading UK cities for entrepreneurs, with Newcastle emerging as the prime choice for starting a business.

This revelation is part of Simply Business' Best UK Cities for Small Businesses Index for 2024. Cities were evaluated on various criteria such as business growth, average turnover, average monthly rent, coworking spaces availability, quality of life, and the efficacy of startup support programmes.

Newcastle has been crowned the leading city for launching new businesses in 2023, thanks to its strong performance in new business growth and average turnover. The city also benefits from relatively lower monthly rent compared to other listed cities, making it a more appealing option for those embarking on self-employment. Newcastle ranked second in startup support and business programmes, bolstered by the North East Growth Hub and Barclays Eagle Labs’ incubator network.

While London leads in average earnings, startup support, and coworking spaces, placing it second on the list, its high average monthly rent of £2,125 might prompt entrepreneurs to consider more affordable UK cities. Leicester, Coventry, and Doncaster are notable mentions, following London as top cities for starting a business in 2024, offering much lower average monthly rents.

Top 15 cities to start a small business in 2024:

1. Newcastle
2. London
3. Leicester
4. Coventry
5. Doncaster
6. Manchester
7. Norwich
8. Birmingham
9. Stoke-On-Trent
10. Glasgow
11. Sheffield
12. Liverpool
13. Belfast
14. Brighton
15. Bristol

Alan Thomas, UK CEO at Simply Business, comments: "Small businesses sit at the heart of our communities and play a vital role in our local and national economy. Our recent SME Insights Report revealed that more than a quarter (26%) of small business owners in the UK believe that they will be forced to cease trading if the outlook for their business does not improve. Half of SME owners believe the rising cost of living is the most glaring challenge facing their business with rising taxes, interest rates, and inflation eating into profit margins.

“We know finance plays a huge part in starting or growing a successful small business. A quarter of small business owners cited lack of funding (25%) as a major factor affecting their business. Which means regional support such as startup programmes, average monthly rent and coworking locations take on additional importance in the quest to save on associated business costs. By thinking about where you set up your business, you can make sure you are best placed to hit the ground running.”