5 Best Places to Start a Business in the UK for Foreign Entrepreneurs

In this article, we'll explore the best places to start a business in the UK, considering factors such as economic growth, talent availability, infrastructure, as well as quality of life.


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    best places to start a business in the uk

    Are you an investor who is looking to start or grow your business in the United Kingdom? Starting a business in the UK is a strategic decision that offers numerous opportunities for entrepreneurs. For both new and established businesses, the UK is a great place to be because of its robust economy, friendly business climate, and varied market. However, the success of your firm can be greatly impacted by your choice of location inside the United Kingdom. 

    In this article, we’ll explore the best places to start a business in the UK, considering factors such as economic growth, talent availability, infrastructure, and quality of life.

    What are the best places to start a business in the UK?

    In this section of the article, we will be covering the best places to start a business in the UK:

    London: The Financial Powerhouse

    London is undeniably one of the best places to start a business in the UK. As the capital city, it is the financial heart of the country, offering unparalleled access to investors, clients, and a vibrant market. Key advantages of establishing a firm in London include:

    • Access to Finance: London is home to numerous venture capital firms, banks, and investors looking to fund innovative startups.
    • Talent Pool: With world-renowned universities and a diverse population, London boasts a highly skilled and dynamic workforce.
    • Networking Opportunities: The city hosts countless business events, conferences, and networking opportunities that can help you connect with industry leaders and potential partners.
    • Global Connectivity: London’s extensive transportation network, including major airports like Heathrow and Gatwick, ensures easy global access.

    Manchester: The Northern Powerhouse

    Manchester’s economic growth and development have earned it the moniker “Northern Powerhouse”. Businesses wishing to take advantage of a reduced cost of living while maintaining access to a vibrant business environment would find this city to be excellent. Key advantages of starting a business in Manchester include:

    • Growing Economy: Manchester has had substantial development and infrastructural investment, positioning it as a centre for innovation and expansion.
    • Affordable Office Space: Manchester offers office space at a lower cost than London, which enables companies to distribute resources more effectively.
    • Strong Talent Pool: Numerous prestigious universities in the city produce a constant flow of highly qualified graduates.
    • Supportive Business Community: Manchester helps companies grow by providing a range of business support services, such as accelerators and incubators.

    Edinburgh: A Hub for Innovation

    Edinburgh, the capital of Scotland, is renowned for its inventive spirit and extensive history. Its IT scene is flourishing, and businesses in the financial and creative sectors find it especially appealing. Benefits of starting a business in Edinburgh include:

    • Innovation Ecosystem: Edinburgh has a strong emphasis on innovation and technology with a large number of digital hubs and co-working spaces.
    • High Quality of Life: The city offers an excellent quality of life, with beautiful surroundings and a vibrant cultural scene, which can help attract and retain top talent.
    • Support for Startups: There are many government initiatives and funding opportunities available to support new businesses.
    • Access to Skilled Workforce: Edinburgh’s universities produce highly skilled graduates, particularly in tech and engineering disciplines.

    Birmingham: A City on the Rise

    Birmingham, the second-biggest city in the UK, has seen tremendous expansion and development. Businesses hoping to get into a sizable, diverse market will find this to be the perfect place. Key benefits of starting a business in Birmingham include:

    • Central Location: Birmingham serves as a vital centre for logistics and distribution due to its central location.
    • Economic Growth: The city has undergone significant infrastructure investment, which draws enterprises to the area.
    • Skilled Workforce: Birmingham is home to several universities and colleges, providing a steady stream of skilled graduates.
    • Affordable Cost of Living: Compared to London, Birmingham offers a more affordable cost of living, which can be beneficial for startups.

    Bristol: A Creative and Tech Hub

    Bristol is renowned for its creative industries and thriving tech scene. It’s an excellent choice for businesses in the tech, media, and creative sectors. Key advantages of starting a business in Bristol include:

    • Creative Industry: Bristol has a strong creative industry, with numerous media and design companies based in the city.
    • Tech Innovation: Particularly in industries like digital media, robotics, and aerospace, the city is a hotbed of tech companies.
    • Quality of Life: Bristol has a good standard of living, with a vibrant cultural scene and beautiful surroundings.
    • Support Networks: There are various business support networks and initiatives available to help startups succeed.


    The UK location you choose for your business launch might have a big impact on its success. Every one of these cities—London, Manchester, Edinburgh, Birmingham, and Bristol—offers something special, from inventive ecosystems and reasonably priced living expenses to financial prospects and highly qualified individuals.

    We at OnDemand International are here to assist you in navigating the challenges of launching a company in the United Kingdom. Our services include business registration, VAT registration, accounting services, and compliance services, ensuring you have everything you need to succeed. Reach out to us right now to find out more about how we can help you with your business ventures in the UK.


    What aspects should I take into account when deciding where in the UK to launch my business?

    A supportive business environment, cost of living, infrastructure, skilled labor availability, accessibility to capital, and quality of life are all important considerations when deciding where to launch your business in the UK. Every location offers advantages of its own, so match these to your company’s requirements.

    Why is London a popular choice for startups?

    Due to its reputation as a financial powerhouse, which provides easy access to investors, a talented and diversified workforce, numerous networking opportunities, and worldwide connectivity, London is a popular destination for entrepreneurs. The city is a great place for growth and innovation because of its thriving market and abundance of business events. 

    What makes Manchester an attractive location for new businesses?

    Manchester’s burgeoning economy, reasonably priced office space, robust university talent pool, and encouraging business environment all make it a desirable destination for start-ups. The reduced cost of living in the city when compared to London also makes resource allocation more effective for entrepreneurs.

    How does Edinburgh support tech and creative startups?

    Edinburgh’s innovation ecosystem, comprising multiple tech clusters, co-working spaces, and government programs, fosters the growth of tech and creative enterprises. These sectors find the city to be appealing due to its high standard of living and easy access to highly trained graduates from nearby institutions.