UK Startups abandon central London as ‘Anywhere Entrepreneurs’ Reshape SMEs
The geography of UK entrepreneurship is undergoing a dramatic shift, uncovered in Hoxton Mix’s new study of 48,000 virtual office subscriptions. The research reveals that three in five startups (60%) now launch outside Central London, compared to just over a third (35%) since 2017.
The Virtual Office & Startup Trends Report 2026, published by Hoxton Mix, examined 48,000 virtual office subscriptions, across 117 locations in the UK from 2017 onwards uncovering key SME and startup trends. The data shows a significant shift in where entrepreneurs are building their businesses in recent years; opting for a London business address whilst living and working elsewhere – maintaining a presence whilst being cost effective.
The report comes as the UK’s private sector business count grew to 5.7 million in 2025, with 89,515 new businesses added to the company register in Q1 alone. There is one clear theme emerging from this study; founders no longer need to live in the city where they build their businesses as nearly half (46%) UK virtual office signups (January 2025 to March 2026) are registered outside major cities.
Of those businesses registered in major cities, East London takes the crown as UK’s startup virtual office capital with 927 new businesses registered from January 2025 and 2,440 since 2017. But perhaps one of the most striking findings in the report is the rise of smaller commuter towns over traditional business hubs. In the last 15 months, Kingston upon Thames (192) outpaced both Birmingham (188) and Manchester (122), signalling that entrepreneurs no longer feel tethered to major urban centres.
Chris Sees, Co-Founder & CEO of Hoxton Mix comments:
“Building a strong, healthy and profitable business doesn’t mean you need to invest in a huge central London office. Our latest report shows that founders are choosing to set up just outside of the city, creating vibrant SME startup hotspots within a commutable 60 minute radius. Services like virtual office solutions allow them the flexibility to scale, connect and grow their businesses in a way that suits, whilst having a prestigious London address for when it matters.”
The findings reflect a broader cultural shift toward location-independent business building. Google Trends data shows search interest for ‘anywhere entrepreneur’ increased by 150% between May 2024 and December 2025, as founders embrace remote working models to build, operate, and scale ventures without a physical presence in the capital.
Chris continues:
At Hoxton Mix, we expect this trend to continue to accelerate. As technology and artificial intelligence continues to evolve working practices, startup formation is likely going to become increasingly decentralised with more founders basing themselves outside of traditional city hubs – not in them – so they’re not tied to a single business location.”
Overall, the Hoxton Mix study illustrates that the UK startup landscape is decentralising and shows no sign of this conscious uncoupling slowing down. Business owners are making decisions to build their startups outside of the city while investing in a London office address to hold credibility.
It’s predicted that commuter belt founders and ‘anywhere entrepreneurs will continue to leverage remote working cultures and flexibility as we look to the future. This shift is being driven by technology-led businesses and professional services, contributing to an era of startup formation where location is no longer a barrier to growth – only a strategic choice.
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