Camden is the optimal location for business start-ups in the UK, according to a new survey. The London borough leads with 2,555 new businesses per 100,000
The new study by the SEO agency Startup Voyager has identified the UK’s best locations for startups, with London boroughs claiming the top three spots. UK government data was used to help determine the rankings.
The study analysed the 100 most populated UK local authorities, ranking them on factors including five-year business survival rates, employment growth, startup funding, and new business creation figures. Each area was then scored out of 10.
Top 10 local authorities for startups
| Rank | Local Authority | Five-Year Business Survival Rate | New Businesses Created in 2023 per 100k | Change in New Businesses 2021-23 | Score (Out of 10) |
| 1 | Camden | 34.0% | 2,555 | -54.4% | 7.4 |
| 2 | Islington | 36.1% | 1,903 | -54.0% | 6.8 |
| 3 | Hackney | 41.1% | 1,721 | -63.7% | 6.4 |
| 4 | Solihull | 40.1% | 503 | -46.5% | 5.7 |
| 5 | Highland | 45.9% | 382 | -53.4% | 5.7 |
| 6 | Merton | 42.9% | 704 | -55.2% | 5.7 |
| 7 | Armagh City, Banbridge and Craigavon | 50.4% | 278 | -64.8% | 5.3 |
| 8 | North Somerset | 42.6% | 476 | -56.7% | 5.3 |
| 9 | Shropshire | 50.9% | 360 | -71.6% | 5.0 |
| 10 | Aberdeen City | 39.7% | 385 | -55.3% | 4.9 |
Following Camden, Islington is second with a score of 6.8 out of 10, benefiting from a 36.1% five-year business survival rate and 1,903 new businesses per 100,000 residents in 2023.
Third-placed Hackney scored 6.4 out of 10, showing the highest five-year business survival rate (41.1%) among the top three areas, though it experienced a steeper 63.7% decline in new business creation.
Solihull emerged as the highest-ranked non-London location, taking fourth place with a score of 5.7 out of 10. The authority posted a solid 40.1% five-year business survival rate, despite creating fewer new businesses (503 per 100,000) than top-ranked areas.
Highland in Scotland ranked fifth with a score of 5.7 out of 10, demonstrating the strongest five-year business survival rate (45.9%) among the top ten locations, showing that smaller urban areas can offer stability for new ventures.
At the other end of the scale, Birmingham ranked last with a score of just 0.7 out of 10. The city recorded a 92.2% decline in new business creation between 2021 and 2023 – and had a five-year business survival rate of 25%.
Rhondda Cynon Taf in Wales ranked 99th with a score of 1.4 out of 10, posting the lowest five-year business survival rate (22.5%) among all areas analysed. Liverpool and Manchester placed 98th and 97th, respectively, both showing five-year business survival rates below 30% and experiencing severe declines in new business creation since 2021.
Major cities generally performed poorly, with Glasgow ranked 95th (2.4 out of 10), Leeds 94th (2.4 out of 10), and Cardiff 81st (3.2 out of 10). This suggests that smaller, less congested areas might offer better conditions for sustainable business growth.
The data revealed stark regional variations, with London boroughs claiming eight of the top 20 positions, while Northern England and Wales dominate the bottom rankings.
