Leeds named just outside top 10 list of best cities in England for small businesses, according to new study

A new study by UK company formation experts YOUR COMPANY FORMATIONS has revealed the top-performing cities in England for small business success this year, shedding light on the places where entrepreneurs are most likely to thrive.

To find out England’s most small business-friendly cities, the study analysed 50 cities using 13 weighted metrics, each chosen to reflect key aspects of business sustainability, affordability, and opportunity. The data covers everything from new business startups and 5-year survival rates to internet costs, coworking availability, and student population density, giving a holistic view of each city’s ecosystem.

Each metric was scored out of 100 and weighted based on its importance to small business success. Business fundamentals like startup numbers, survival rates, and unemployment were given the greatest emphasis, while cost of living and infrastructure rounded out the picture. Data was sourced from reputable organisations including the Office for National Statistics (ONS), Broadband.co.uk, Coworker.com, Numbeo, and the Higher Education Statistics Agency (HESA).

Leeds ranks just outside the top 10 in 11th place with a total score of 44.71, and it’s easy to see why it came so close. It’s one of the UK’s powerhouses for business creation, ranking 2nd in both new startups (3,805) and employer births (3,550). It also offers an impressive coworking infrastructure (11 spaces per 100,000 residents, 3rd overall) and a sizable student population of 16,715, which helps support a dynamic and youthful business ecosystem. Internet speeds are solid at 60 Mbps, and the city enjoys a healthy workforce, with 6,545 active employees per 100,000 people.

That said, Leeds does face some challenges that may have edged it out of the top tier. The city has one of the highest business death rates in the study (3,785, ranking 49th), and its 5-year survival rate of 91% places it 32nd, suggesting high churn despite strong entrepreneurial energy. While not the worst, its unemployment rate stands at 4.1%, and its living costs are on the higher side, with average monthly rent at £1,772 and transport costs at £93. Still, for business owners drawn to a high-growth environment with strong infrastructure, Leeds remains a very attractive contender.

Bury takes the top spot with a total score of 56.04, thanks to its low unemployment rate (3.4%), impressive 93.8% business survival rate, and second-highest number of active employees per 100,000 residents (13,367). Close behind is Salford in second place (53.79), which leads the pack in workforce density (14,522 per 100,000) and boasts a strong 94% survival rate, although its business death rate and 5.2% unemployment hold it back slightly. Wakefield ranks third (50.71), standing out for its low unemployment (2.9%), fast internet (64 Mbps), and high employment activity. In fourth, Stockport (50.41) combines fast broadband (103 Mbps, second-fastest overall) with solid startup numbers and a healthy workforce. Manchester takes fifth (48.76) with standout startup and employer birth numbers, along with the most coworking spaces in the UK, though its high costs and unemployment (5.1%) drag down its score.

Doncaster lands sixth (45.97), offering affordability in rent (£1,000) and transport (£82), with strong startup momentum and low unemployment (3.2%). Stockton-on-Tees comes seventh (45.85), excelling in cost of living, one of the lowest rents in the country (£767), and a 93% survival rate. Chelmsford, in eighth place (45.62), scores highly for survival (94.3%) and has the largest student population, though rent (£2,033) and transport costs are among the highest. Solihull (ninth, 45.06) blends a 94% survival rate with decent infrastructure, despite expensive utilities and rent. Rounding out the top 10 is York (44.85), boasting the lowest unemployment in the study (2.5%) and a 93.9% survival rate, though it falls behind with sluggish internet (43 Mbps) and high living costs.

At the other end of the scale, Harlow, Wolverhampton, Liverpool, Southend-on-Sea, Luton, and Nottingham struggled, each scoring under 33, suggesting they may present more challenges for startups in 2025.

Top 20 list of best cities in England for small businesses: