Is London losing its crown? Here’s where UK start-ups are really thriving
Regional entrepreneurship in the UK is booming, and new research has highlighted the fact that the top fastest-growing start-ups are now based outside the capital.
The findings came from Godaddy’s research initiative Venture Forward, which analysed over half a million digital micro businesses. The figures showed that each of the top 20 fastest-growing constituencies is located outside the capital.
Westminster constituency remained in first place when it came to micro business density with a score of 22.48 small firms for each 100 residents. However, Stoke-on-Trent South has crept to second place, with a score of 14.02.
The top fastest-growing constituency was Wentworth and Dearne, having witnessed 500 per cent year-on-year growth with a score of 1.88.
Andrew Gradon, head of Godaddy UK & Ireland, said London has long been known as a renowned start-up hub in the UK, but the data has “consistently demonstrated” that growth has been taking place across the whole of the UK for many reasons.
Gradon said: “There are several compelling reasons for small businesses to establish themselves in regions outside of London, largely bolstered by changing lifestyle aspirations and wanting, or needing, lower living costs.”
However, whilst setting up shop away from the city is far from what Gradon would consider a “new trend”, he says it also doesn’t mean there is a lack of opportunity.
He added: “As Venture Forward research indicates, the widespread availability of cost-effective technology has allowed entrepreneurs to set up their micro businesses from anywhere in the country without the need to be located in the heart of the capital.
“Coupled with this, there is a growing consumer trend toward supporting local businesses, with shoppers opting to invest in their local economies, consequently offering entrepreneurs a more supportive and engaged customer base.”