Despite London continuing to lead the way with the highest volume for startup business activity in 2024, some of the UK’s regional hubs are proving to be fertile ground for new businesses, according to new research by SME loan platform Funding Circle.
Greater Manchester, the West Midlands, Brighton and Oxford are all reporting strong new business activity figures, thanks to accelerator programmes, lower operating costs and access to top talent from regional universities.
Top growth sectors were business administration and support services (17%) followed by finance and insurance (5%), according to the research.
Jerome Fernandez, managing director at Funding Circle, said: “The growth of new businesses is essential to strengthening the UK economy, and providing entrepreneurs with access to finance is key to turning their vision into reality.”
Fernandez pointed to ONS data which suggests a positive outlook. “ONS business insights revealed that 22% of trading businesses expect their turnover to rise by March 2025, and 20% anticipate overall performance growth within the next year,” he added.
“The data underscores the resilience of UK entrepreneurs, the shifting regional business dynamics, and the continued importance of financial support and policy initiatives to sustain and encourage business growth in the years ahead.”
This research follows a series of government initiatives to tackle the scale up gap as part of the Modern Industrial Strategy.
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