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The UK’s top locations for startup growth in 2017

London may lead headlines for British business, but a study has revealed the UK’s top locations for new startup growth this year – and it's not the capital.
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Business information service DueDil released the details, which found that Salford in Manchester topped the ranking for startup growth, with an 85.4 per cent year-on-year increase for new businesses.

Some 751 new Salford startups were forged in Q1 2016, which spiked to 1,393 in Q1 2017. Startup growth for the full year, meanwhile, saw 2,850 companies open locally in 2016, which is forecast to hit 5,286 this year.

Seemingly Salford is in a league of its own in terms of its attraction for startup growth, as new businesses are flocking to the spot.

Behind Salford’s 85.4 per cent surge, Leicester secured the second spot for startup growth with a year-on-year change of 34.45 per cent. That number dropped significantly still for Norwich in third place with a 22.12 per cent startup growth increase. Liverpool and Oxford rounded off the top five.

By comparison, London was much further down the ranking for startup growth with a 5.12 per cent increase year-on-year.

That said, the UK capital is still the leader for startup growth with 57,235 companies launched in the first quarter of this year alone – up to 223,966 for 2017. Birmingham, Manchester, Glasgow and Leeds join London as the five cities producing the most startups, although that could change in time.

Justin Fitzpatrick, COO and co-Founder of DueDil, said: “Interestingly, just a handful of the UK’s major cities made the overall top 20 for startup growth, with cities such as London, Birmingham, Glasgow and Leeds all absent from the top rankings, suggesting that they are slowly losing their grip on their status as the UK’s startup growth.”

Catch the full ranking of top locations for startup growth below.

 

Town/City

YOY % Change

First Quarter 2016

First Quarter 2017

Full Year 2016

Forecast for 2017

Salford

85.49%

751

1393

2850

5286

Leicester

34.45%

865

1163

3580

4813

Norwich

22.12%

312

381

1115

1362

Liverpool

21.71%

1207

1469

4928

5998

Oxford

18.32%

273

323

996

1178

Swansea

18.29%

339

401

1383

1636

Lincoln

18.05%

133

157

500

590

Swindon

16.35%

312

363

1241

1444

Derby

16.11%

509

591

2153

2500

Stoke-on-trent

15.62%

333

385

1314

1519

Southampton

14.47%

477

546

1914

2191

Nottingham

13.66%

659

749

2449

2783

Plymouth

12.99%

308

348

1195

1350

Bolton

12.74%

738

832

2788

3143

Peterborough

11.90%

462

517

1602

1793

Sunderland

9.09%

330

360

1139

1243

Kingston Upon Hull

8.87%

372

405

1405

1530

Exeter

8.08%

198

214

789

853

Belfast

7.99%

488

527

1911

2064

Wolverhampton

7.60%

592

637

2668

2871

Worcester

6.21%

161

171

559

594

Birmingham

6.08%

3912

4150

16569

17577

Middlesbrough

5.83%

326

345

1240

1312

Cardiff

5.19%

732

770

2786

2931

London

5.12%

54449

57235

213064

223966

Glasgow

2.47%

2021

2071

7847

8041

Aberdeen

2.34%

470

481

1700

1740

Manchester

1.90%

2471

2518

9491

9672

Gloucester

1.08%

186

188

710

718

Bradford

0.97%

1033

1043

3815

3852

Leeds

0.44%

1809

1817

7291

7323

Sheffield

-0.51%

977

972

3622

3603

Newcastle upon Tyne

-0.61%

493

490

1911

1899

Chelmsford

-0.72%

416

413

1493

1482

Cambridge

-1.25%

319

315

1155

1141

Coventry

-1.35%

817

806

3075

3034

Northampton

-1.68%

594

584

2283

2245

York

-1.78%

338

332

1251

1229

Bristol

-2.60%

1347

1312

5122

4989

Milton Keynes

-4.14%

797

764

3035

2909

Southend-on-sea

-4.66%

579

552

2107

2009

Edinburgh

-8.38%

1742

1596

6666

6107

Dundee

-11.73%

392

346

1136

1003

Portsmouth

-17.64%

584

481

2260

1861

Warrington

-18.86%

1336

1084

5189

4210

Brighton and Hove

-19.11%

1324

1071

4451

3600

Bournemouth

-19.24%

629

508

2099

1695

Luton

-75.02%

2586

646

6880

1719

While certain regions may be booming, the 173,100 companies started during the first three months of this year is down year-on-year.

“The overall decrease in startup growth across the UK, is perhaps demonstrating a cautious attitude towards enterprise with Brexit looming. Banks and alternative finance providers have an opportunity to play a role in growth through investment,” added Fitzpatrick.

Image: Shutterstock

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About Author

Zen Terrelonge

Zen Terrelonge is the deputy editor of Real Business, specialising in media, innovation, technology and the digital sector. A media professional with eight years worth of experience he has worked for both startup and established publications.

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