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Edinburgh and Aberdeen Among Top Cities to Start a Business
New research from Virgin Money ranks the two Scottish cities in its top 15 based on a variety of key metrics.
Virgin Money has launched a study to reveal the UK cities with the best prospects for starting a new business in 2023.
Edinburgh and Aberdeen placed second and sixth respectively in the top 15 cities, showing them to be strong locations for prospective owners to locate next year.
The research ranks businesses based on a variety of key metrics, including average commuting time, innovation, and internet speed, amongst other factors.
Recent years have been challenging for small businesses, with an estimated 20% increase in insolvencies in 2022, and nearly 400,000 businesses closing between 2020 and 2021.
Despite this, SMEs continue to launch new businesses. Last year saw a record for start-ups registered on Companies House, with nearly 80 new companies listed per hour in the first half of the year.
With another difficult year likely ahead in 2023, it’s important that entrepreneurs set themselves up with the best chance of success possible.
The top 15 cities to start a business, according to the Virgin Money research, are:
- Cambridge
- Edinburgh
- York
- Oxford
- Portsmouth
- Aberdeen
- Plymouth
- Swindon
- Southampton
- Exeter
- Cardiff
- Gloucester
- Newport
- Milton Keynes
- Bristol
Ranking as the city with the best prospects for new businesses, Cambridge scored highly in all metrics. The city ranks in the top five for length of commute, people in employment and internet quality, and is the top ranked city for both happiness and innovation.
Edinburgh scored well across most categories, and features in the top five for CO2 emissions, business churn rate, and employment.
Starting a business is by no means easy, especially in the current financial climate, and location is only one aspect that can contribute to success.
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Sharon Ellis, head of business networks at Virgin Money, says: “It’s great to see cities outside of London coming out on top in the study, which adds to the evidence that businesses are investing in thriving cities outside of the capital. Location is one of the most important factors when you’re starting a business, but what else do you need to know?
“Start by mapping out your business idea, and make sure it addresses the crucial questions you’ll need to ask yourself before beginning your journey.
“You’ll then need to write a detailed business plan to bring your business to life. Determine whether your business brings something new to the market and conduct surveys of some potential customers. It’s good to be aware of your strengths and weaknesses!”
Ellis added: “You should then get your finances in order and think beyond just finding the right business current account that suits your needs. Think about what options there are to help you with your finances, including data and insights tools and start-up loans.
“Lastly, you’ll need to market your business. Make your company website user friendly and easy to use, and don’t forget to use social media to get the word out!”
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