Manchester has been named the fifth most entrepreneurial city in the United Kingdom, according to the latest research from Instant Offices.
While London continues to lead in the total number of business start-ups, other major UK cities are making significant contributions to the entrepreneurial landscape. Instant Offices’ Entrepreneurial Index ranks the UK’s cities by analysing Companies House data and comparing the average population in each city with the number of businesses launched year-on-year. This year, Manchester secured fifth place, with Birmingham taking the top spot.
Despite the uncertainties surrounding Brexit, the UK’s start-up ecosystem saw record investment growth in 2017. A report by Deal Room indicated that UK investment surged by 87 per cent to €7.1 billion, surpassing the combined investments of Germany, France, and Sweden. The Startup Outlook Report reveals that UK entrepreneurs remain optimistic, with 49 per cent confident of better business conditions in 2018 and 42 per cent expecting conditions to remain stable. Eight out of ten start-ups plan to expand their teams within the year.
London unsurprisingly leads in total start-up numbers, with 145,993 businesses launched in 2017. However, on a pro rata basis, Birmingham outperforms the capital, being designated the Most Entrepreneurial UK City in 2018 due to its impressive start-up to population ratio. Birmingham’s recent growth is attributed to its robust support networks, accelerator schemes, and substantial infrastructure investments. The completion of HS2 is anticipated to further transform the West Midlands, providing significant economic benefits to Birmingham’s metropolitan economy.
The growing preference for agile working methods has resulted in explosive growth in the flexible office market across UK regions, notably in Birmingham, Manchester, and Liverpool. As reported in Instant’s 2018 UK Market Summary, while London continues to dominate, Birmingham experienced some of the highest market activities in 2017. Centre growth there was up 13 per cent, ranking fourth behind Liverpool (23 per cent), Manchester (17 per cent), and Leeds (15 per cent). Birmingham also offers a variety of office spaces, with an average workstation rate of £264.
John Williams, the head of marketing and research at Instant Offices, noted, “While the majority of demand still comes from companies seeking flexible office requirements for smaller teams, our data reveals that larger, corporate occupiers are also looking for flexible space in what is proving to be a very competitive market in cities like Leicester.”
Manchester’s position as the UK’s fifth most entrepreneurial city showcases its growing influence in the UK’s start-up ecosystem. As the entrepreneurial landscape continues to evolve, cities like Manchester and Birmingham are becoming increasingly pivotal in driving innovation and business growth across the country.