These Are the UK Cities With the Highest Entrepreneurial Drive

These Are the UK Cities With the Highest Entrepreneurial Drive

London has the highest entrepreneurial drive in the UK, a July 2026 report finds. With over 12K innovative SMEs expected to receive a financial boost from the government later this year, a new study by British Business Funding analyzed business density, survival figures, and search activity to determine which cities show the strongest entrepreneurial spirit.

• Londoners launched 75.5K new businesses in just one year, more than any other UK city.
• Residents in Manchester are the most curious about business ownership, looking for ways to start a company more often than anyone else in the UK.
• In Stirling, businesses have the best chances to remain open, with over half of the businesses (50.7%) surviving the 5-year mark.

The study examined the 54 largest UK cities across four key entrepreneurship factors. Business density revealed the size of the industry in each city, measuring active companies against population size. A separate measure tracked how many new ventures actually opened their doors in the most recently recorded year. The survival rate followed businesses founded in 2019 to see which ones were still operating five years on. Search activity offered another window into local ambition, counting how often residents looked for advice on starting up, from “business ideas” to “register a company.”

Here are the 10 UK cities with the highest entrepreneurial drive:

You can access the complete research findings here.

1. London

• Business Formation-Related Searches (per month): 40.6 per 100K people
• New businesses started in 2024: 75.5K
• Businesses still trading 5 years after launch: 38.2%
• Active businesses per 100k ppl: 6,549

London is ahead of every other UK city when it comes to entrepreneurial drive, with 75.5K new ventures started in a single year, more than anywhere else in the country. Right now, the capital has 6.5K active businesses per 100K residents, the highest density that other top 5 cities like Manchester or Birmingham cannot quite match. Out of these companies, 38.2% survive beyond their fifth year, but locals show strong interest despite high competition, with 40.6 business-related queries per 100K residents.

2. Manchester

This northern powerhouse takes second place, with locals showing more curiosity about business ownership than anywhere else in the UK. Manchester residents launched 3,835 new companies in a single year, and a third of them (33.9%) are expected to stay in business for over five years. Right now, the city has over 26K active businesses, or 4.4K per 100K residents, the third-highest rate in the country.

3. Derry

Third place goes to Derry, where nearly half (44.2%) of all businesses established in 2019 remain open today. Local entrepreneurs started 755 new ventures last year, and 5,005 companies currently serve the community. More businesses are expected to appear in Derry, too, with residents looking up business advice at a rate of 39.4 times each month.

4. Norwich

Norwich ties with Derry for entrepreneurial drive, but locals look up business creation data 55% more often here, at 61.1 queries per 100K people. Over 4 in 10 new ventures in Norwich stay open after five years, and residents established 680 new companies in a single year. Right now, over 5.5K companies are on Norwich’s market, over 500 more than in Derry.

5. Birmingham

In this place is Birmingham, entrepreneurs launched 6,500 new businesses in a single year, the second-highest figure in the UK, right after London. The local interest in business ventures is even higher than in Norwich, with a rate of 62.5 queries a month. The city currently supports 43.1K businesses, or 3.6K per 100K residents, highlighting how active the business industry is. 

A spokesperson from British Business Funding commented on the study:

“Starting a business is one thing, but keeping it going often comes down to access to the right funding at the right time. Many founders underestimate how much capital they will need in those early years, and that is where businesses can stumble. The cities that score highest create environments where those companies can find the financial support they need to survive and grow, rather than relying on general interest in new ventures. Funding is the lifeblood of any new business, and the UK’s most entrepreneurial cities understand that better than most.”

If sharing this data externally, please credit: https://britishbusinessfunding.co.uk/