Procurement · 9 March 2018

Britain’s best business hubs for funding-hungry startups

Best business hubs
Edinburgh was ranked as the best city for new startups
Frustrated with your local growth prospects? New research could help map your next move, revealing Britain’s best business hubs and the funding options available to small business owners.

The overall rankings, produced by MoneySuperMarket, evaluated which best places offered the best value for money and most stable prospects for both startups and freelancers.

Factors from hourly freelance rates, cost of housing, number of co-working spaces and broadband speeds were analysed to provide an overview of what each city had to offer Britain’s small business owners. Each metric was given a score out of ten to produce the final rankings.

To guide business owners through their options, Business Advice took a look at the local finance opportunities available in some of the top-ranking UK locations.

Funding options in Britain’s best business hubs

  1. Edinburgh
Coming out on top as offering most to startup businesses was Scotland’s hilly capital, the thriving home to over 20, 000 small companies.

The greatest lure was identified as the Small Business Loan Fund? interest-free loans of up to 2, 500 provided by Edinburgh Council. The East of Scotland Investment Fund also offers match-funded loans up to 50, 000.

A relatively low cost of business insurance could also benefit smaller companies, as well as fast broadband speeds and the considerable number of co-working spaces.

  1. Leeds
Finance opportunities in Leeds made the Yorkshire city England’s most attractive location for startups.

Bristol has a range of funding options for its entrepreneurs
The Business Growth Programme offers grants of up to 50, 000 for entrepreneurs based in Leeds, while the 35m Growing Places Fund helps startup founders access loans up to 1m, provided applicants find 3 of private funding for every 1 of the loan.

  1. Bristol
Third in the table was Bristol, where startup founders have a number of different funding options available.

The West of England Growth Fund offers grants between 10, 000 and 80, 000 for promising ventures. The region’s Local Enterprise Partnership (LEP) has larger investments of 1m available from a 25m pool, and a number of other loan funds with favourable interest rates.

Best of the rest

Other places given honourable mention included Northampton, where the LEP’s Growth Hub offers extensive advice to startup founders regarding their funding options, and Nottingham, which provides support up to 2m for projects with job creation at the heart.

Nottingham’s Creative Quarter was also commended for its investment in tech and life science businesses, with loans available from 500 to 25, 000.

Outside of England, Glasgow, Aberdeen and Belfast all ranked inside the ten best business hubs for entrepreneurs looking for financial backing.

Take a look at MoneySuperMarket’s full list


 
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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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