Location, location, location. It’s a key factor in whether or not a business is successful. Even if almost everything you do is in the virtual world, where you run it from will still determine things like the cost of premises, access to training, local business support networks and quality of life.
If you’re fairly flexible about where you want to start or relocate your business, read on to find out where the best places are.
Factors to consider when choosing a location
If you’re looking into where to start your business, consider:
- Local demand: Research whether there’s a market need for your products or services.
- Competition: Assess the existing competitive landscape.
- Cost and availability of premises: Compare commercial property prices and rental rates.
- Talent availability: Check access to employees with relevant skills.
- Transport links: Consider connectivity for staff, suppliers, and customers.
- Business support: Look for local enterprise partnerships and networking groups.
- Quality of life: Factor in what would make you and potential employees happy.
- Weather: Rainy days can be a big no-no for some businesses and might even cause floods. (Or rainy days can be a yes-yes if you run an umbrella business.)
The best locations to start a business in the UK
A study by Bionic.co.uk ranked the top ten places to start a business in the UK in 2025 based on these eleven factors:
- Number of businesses % difference 2020-24
- Number of businesses in 2024 in each Local Authority
- Businesses per 1,000 population
- Number of industries in each Local Authority
- GDP 2022
- Regional Gross Domestic Product (GDP)
- % growth 2020-2022
- Precipitation summer 2001-2020 median (daily) mm
- Precipitation winter 2001-2020 median (daily) mm
- Crimes recorded (non-residential burglary/theft – burglary business & community)
- Affordability ratio
By ranking these factors, these areas were established as the top ten locations to start a business:
- Hackney
- Mansfield
- Ipswich
- Blackburn with Darwen
- Kingston upon Hull
- Torfaen
- Camden
- Doncaster
- Thanet
- Wolverhampton
The fastest and slowest growing economies in the UK
Which parts of the UK have had the fastest and slowest GDP growth since 2020?
Fastest GDP growth:
- North Lincolnshire
- Lambeth
- Islington
- Thurrock
- Teignbridge
- Torridge
- Tanworth
- Haringey
- Isle of Anglesey
- Mid Devon
Slowest growth:
- South Derbyshire
- City of London
- Forest of Dean
- Surrey Heath
- Tower Hamlets
- Elmbridge
- East Cambridgshire
- Runnymede
- West Berkshire
- Ealing
From Bionic.co.uk
The wettest places in the UK
If your business is likely to do worse in rainy weather (and to avoid higher flood risks), avoid these damp areas as stated on Bionic.co.uk.
- Argyll and Bute, Scotland
- Stirling, Scotland
- Rhondda Cynon Taf, Wales
- Highland, Scotland
- Inverclyde, Scotland
- Gwynedd, Wales
- Neath Port Talbot, Wales
- Merthyr Tydfil, Wales
- Bridgend, Wales
- Na h-Eileanan Siar, Isles of the UK
The best locations for freelancers in the UK
A study by Markel Direct revealed the best locations to be a freelancer in the UK, with Exeter taking the top spot.
- Exeter
- Leeds
- Wakefield
- Manchester
- Aberdeen
- Edinburgh
- Bristol
- Brighton
- Milton Keynes
- Liverpool
The study compared 49 locations in the UK across five key metrics:
- Freelancer availability
- Percentage of freelance jobs paying more than £40,000
- Full-fibre internet coverage
- Train connectivity
- The number of free Wi-Fi working spaces
Each factor was ranked out of 49, depending on how it compared to the other locations (1 being the highest, 49 being the lowest).
Exeter emerged as the highest-ranking location in the UK for freelancers. It came out on top for the number of freelance jobs per 10,000 people in the area and ranked at number eight for the free workspaces.
Leeds was the second-best ranking city in the UK for freelancers, and although this location didn’t rank number one for any single factor, it scored well for railway station connectivity and the number of free workspaces.
This is a similar story for the third-highest ranking city, Wakefield, also in Yorkshire. This location ranked fourth for the number of freelance jobs and ninth for train connectivity.
Heading north seems like a good option for freelancers, with six out of the top 10 cities all located in northern England or Scotland.
Freelancers wanting to be where the higher-paying opportunities are should head to Portsmouth, according to the research. The study found that this location ranked first for the highest percentage of jobs paying more than £40,000. According to the ONS, £40,000 is the benchmark of a high-paying salary. Of all the freelance roles advertised in Portsmouth, 70% offered a salary of more than £40,000. This was followed by Walsall (with 67%) and Blackpool (with 64%).
|
Ranking factor |
Location that ranked #1 |
|
Number of freelance jobs |
Exeter |
|
Percentage of freelance jobs offer more than £40,000 |
Portsmouth |
|
Full-Fibre coverage |
Kingston upon Hull |
|
Train Connectivity |
London |
|
Free Wi-Fi Workspace |
Brighton |
From: markeluk.com/state-of-self-employment
Regional opportunities
Northern powerhouse cities
Cities like Leeds, Newcastle, and Sheffield offer affordable business premises and improving infrastructure. Government initiatives to boost northern economies provide potential funding and support opportunities. These cities also benefit from growing tech communities and lower living costs that help attract talent.
Coastal and rural towns
With remote work firmly established, smaller coastal and rural towns have become viable business locations. Places like Falmouth, Margate, and Whitby offer lower costs and attractive lifestyles. Many such locations have growing communities of creative and digital professionals seeking better work-life balance.
London boroughs
Hackney topped the list of the best places to start a small business, and Camden came in seventh, with many more showing the highest GDP growth over the past few years. While central London remains expensive, outer boroughs like Croydon, Waltham Forest, and Bexley offer more affordable alternatives with good transport links. These areas provide access to London’s markets without the premium costs of central locations.
