Newcastle upon Tyne has been named one of the best cities in the UK to start a business, according to new research from small business insurer Markel Direct.
The study analysed 46 of the UK’s largest cities across four key factors that influence business success: business closure rates, five-year survival, broadband coverage, and household income growth to identify the country’s best locations for entrepreneurs.
Newcastle upon Tyne ranked 6th nationally, achieving a total score of 28.6 out of 40. The city performed particularly well for income growth (8.8) and five-year survival (8.0), both indicators of a strong local economy and sustainable business environment. While its broadband score (5.4) was slightly below average, Newcastle’s overall performance highlights its reputation as a fast-growing hub for digital and creative industries in the North East.
Sunderland and Durham also showed solid potential, though they did not feature in the national top 15. Sunderland’s high rate of broadband coverage and proximity to a skilled workforce give it a competitive edge for new ventures, while Durham’s strong academic links and research community make it attractive for innovation-driven start-ups.
Meanwhile, Middlesbrough and Hartlepool are benefitting from ongoing regeneration and investment projects that are expanding opportunities for small businesses, particularly in manufacturing, technology and green energy sectors.
National picture: Belfast tops the list
Across the UK, Belfast ranked as the top city to start a business, scoring 34 out of 40. It achieved a perfect 10/10 for business closures, experiencing just 8.22 business closures per 100 active businesses in the area, and posted strong scores in gigabit broadband coverage of 95.6% of premises. It also sported a healthy five-year survival rate of 44.6%.
Cambridge narrowly missed out on the top spot, achieving an overall score of 33.8. This impressive score was driven by a 9.6 in business closure score, with only 8.93 business closures per 100 active businesses, and a 9.4 in its five-year survival score, with 45% of businesses reaching this milestone.
Exeter was third, with the highest five-year business survival rate of any city, with 51.7% of businesses making it to this milestone, and a strong business closure score of 8.8. However, their broadband speed only managed a score of 5.8.
Top 15 UK cities to start a business
| Rank | UK city | Business closure score | 5 year survival score | Gigabit capable broadband score | Average annual growth of GDHI score | Total score out of 40 |
| 1 | Belfast | 10.0 | 8.8 | 8.8 | 6.4 | 34.0 |
| 2 | Cambridge | 9.6 | 9.4 | 8.0 | 6.8 | 33.8 |
| 3 | Exeter | 8.8 | 10.0 | 5.8 | 8.6 | 33.2 |
| 4 | Bristol | 8.0 | 8.4 | 7.2 | 9.2 | 32.8 |
| 5 | Stockport | 7.4 | 9.2 | 6.4 | 6.2 | 29.2 |
| 6 | Newcastle upon Tyne | 6.4 | 8.0 | 5.4 | 8.8 | 28.6 |
| 7 | Edinburgh | 8.6 | 5.2 | 5.6 | 9.0 | 28.4 |
| 8 | Wakefield | 6.8 | 7.0 | 6.8 | 7.6 | 28.2 |
| 9 | Leicester | 4.6 | 5.4 | 9.6 | 8.2 | 27.8 |
| 10 | Dundee | 7.2 | 7.8 | 8.2 | 4.4 | 27.6 |
| 11 | Leeds | 6.0 | 5.0 | 7.6 | 8.4 | 27.0 |
| 12 | Norwich | 8.4 | 6.2 | 5.0 | 7.2 | 26.8 |
| 13 | York | 9.2 | 9.6 | 2.0 | 4.4 | 25.2 |
| 14 | Lincoln | 8.2 | 9.8 | 4.4 | 2.6 | 25.0 |
| 15 | Nottingham | 7.0 | 3.0 | 7.4 | 7.0 | 24.4 |
Rob Rees, Divisional Director at Markel Direct, said: “Small businesses are the backbone of the UK, and many of the cities in our study are ideal locations for startups to thrive. Whilst running a successful business is influenced by factors beyond solely location, having access to superfast internet, a local talent pool and business support networks can provide your venture with the best start in the pivotal early days.”
Business leaders of tomorrow: how Gen Z’s approach differs to established business owners
The study, which explores the next generation of entrepreneurs and business leaders, also compared the motivations of Gen Z for starting a business with those of established business owners.
Whilst both established business owners and Gen Z entrepreneurs shared similar motives for wanting to set up their business – namely being their own boss, financial independence and flexibility – they differed in other areas. One such area was financing their venture, with Gen Z owners more likely to turn to newer financing methods such as crowdfunding or business competitions, whereas established owners were more likely to rely on traditional methods such personal savings.
Furthermore, the study found that social media creators serve as the top influence for young entrepreneurs in the digital era, surpassing conventional factors such as family, friends, and government business support initiatives.
To read the full study, visit the Markel Direct website.