A recent study has identified the most promising areas for launching a new business in the UK, with Torfaen leading the pack.
Conducted by experts at IT service software company InvGate, the analysis utilized data from the Office for National Statistics to compare the number of registered businesses across various local authorities between 2022 and 2023. The rankings were based on the highest percentage increases in new businesses over this period.
Top Findings:
- Torfaen emerged as the frontrunner, exhibiting an impressive 11.74% increase in new businesses from 2022 to 2023. The total rose from 2,215 to 2,475, marking an increase of 260 establishments, with 215 of these in the wholesale sector.
- Blackpool secured second place with a 7.24% rise, going from 3,870 businesses in 2022 to 4,150 in 2023, which equates to an additional 280 establishments. The transport and storage sector contributed 125 new businesses, while 110 were in business administration and support services.
- North Warwickshire claimed the third spot with a 5.03% increase, expanding from 2,785 to 2,925 businesses—an increase of 140. Here, 55 businesses were in transport and storage, and 35 were in accommodation and food services.
Additional Highlights:
- Oldham saw a 3.98% rise, bringing its total from 7,155 to 7,440 (+285).
- North Kesteven increased by 2.64%, growing from 4,160 to 4,270 (+110).
- Ashfield added 70 new businesses for a 2.26% increase.
- Doncaster saw an increase of 2.23% with 220 new businesses.
- Amber Valley recorded a 2.19% increase (+100).
- Hackney climbed to 2.17%, increasing its total from 24,405 to 24,935 (+530).
- Ipswich rounded out the top ten with a 2.06% increase (+95).
Conversely, Wyre Forest experienced the steepest decline in new businesses, with a –12.25% drop, losing 580 establishments and falling from 4,735 in 2022 to 4,155 in 2023.
This study underscores the dynamic nature of the UK’s business landscape, highlighting both opportunities for growth and challenges in certain regions.
Ariel Gesto, CEO of InvGate, shared insights on the results, stating:
“Selecting the ideal location is crucial for any startup. The top ten rankings suggest that smaller cities may present better opportunities for building a business in a less competitive environment. Instead of immediately entering markets like London or Manchester, entrepreneurs could first establish themselves in a smaller area and expand to more populated regions as they grow.”
