Wakefield, Leeds and York among Yorkshire’s top startup hubs, new study finds
A new study said 46 of the UK’s largest cities were analysed across a number of factors including business closure rates, five-year startup survival, broadband speeds, and household income growth.
Wakefield, Leeds, and Yorkhave emerged as the top-performing Yorkshire cities to start a business, according to a new study by Markel Direct.
The research, which analysed 46 of the UK’s largest cities across factors including business closure rates, five-year startup survival, broadband speeds, and household income growth, highlights the region’s varied strengths.
Wakefield ranked 8th overall, with a total score of 28.2/40. The city is the most balanced of the three Yorkshire locations, achieving solid scores for both business closures (6.8) and survival (7), along with decent broadband (6.8) and income growth (7.6). It represents a strong all-rounder for starting a business in the region.
Leeds ranked 11th,scoring 27.0/40. It performed best on household income growth (8.4) and broadband coverage (7.6), both important for supporting business growth. However, its five-year survival score (5.0) was comparatively weak, suggesting a higher churn rate for new firms.
York ranked 13th, with a total of 25.2/40. It stood out for its excellent business-closure score (9.2) and strong five-year survival rate (9.6), underlining its resilience. However, very low gigabit broadband coverage (2.0) and modest income growth (4.4) pulled down its overall performance.
Other Yorkshire cities in the study included Kingston upon Hull, which ranked 17th; Sheffield, in 21st place; and Bradford, which placed 39th overall.
Belfast ranked as the top city to start a business, scoring 34 out of 40. It achieved a perfect 10/10 for business closures, experiencing just 8.22 business closures per 100 active businesses in the area, and posted strong scores in gigabit broadband coverage of 95.6% of premises. It also sported a healthy five-year survival rate of 44.6%.
Cambridge narrowly missed out on the top spot, achieving an overall score of 33.8. This impressive score was driven by a 9.6 in business closure score, with only 8.93 business closures per 100 active businesses, and a 9.4 in its five-year survival score, with 45% of businesses reaching this milestone.
Exeter was third, with the highest five-year business survival rate of any city, with 51.7% of businesses making it to this milestone, and a strong business closure score of 8.8. However, their broadband speed only managed a score of 5.8.
Top 15 UK cities to start a business
| Rank | UK city | Business closure score | 5 year survival score | Gigabit capable broadband score | Average annual growth of GDHI score | Total score out of 40 |
| 1 | Belfast | 10.0 | 8.8 | 8.8 | 6.4 | 34.0 |
| 2 | Cambridge | 9.6 | 9.4 | 8.0 | 6.8 | 33.8 |
| 3 | Exeter | 8.8 | 10.0 | 5.8 | 8.6 | 33.2 |
| 4 | Bristol | 8.0 | 8.4 | 7.2 | 9.2 | 32.8 |
| 5 | Stockport | 7.4 | 9.2 | 6.4 | 6.2 | 29.2 |
| 6 | Newcastle upon Tyne | 6.4 | 8.0 | 5.4 | 8.8 | 28.6 |
| 7 | Edinburgh | 8.6 | 5.2 | 5.6 | 9.0 | 28.4 |
| 8 | Wakefield | 6.8 | 7.0 | 6.8 | 7.6 | 28.2 |
| 9 | Leicester | 4.6 | 5.4 | 9.6 | 8.2 | 27.8 |
| 10 | Dundee | 7.2 | 7.8 | 8.2 | 4.4 | 27.6 |
| 11 | Leeds | 6.0 | 5.0 | 7.6 | 8.4 | 27.0 |
| 12 | Norwich | 8.4 | 6.2 | 5.0 | 7.2 | 26.8 |
| 13 | York | 9.2 | 9.6 | 2.0 | 4.4 | 25.2 |
| 14 | Lincoln | 8.2 | 9.8 | 4.4 | 2.6 | 25.0 |
| 15 | Nottingham | 7.0 | 3.0 | 7.4 | 7.0 | 24.4 |
Rob Rees, Divisional Director at Markel Direct, said:“Small businesses are the backbone of the UK, and many of the cities in our study are ideal locations for startups to thrive. Whilst running a successful business is influenced by factors beyond solely location, having access to superfast internet, a local talent pool and business support networks can provide your venture with the best start in the pivotal early days.”
Business leaders of tomorrow: how Gen Z’s approach differs to established business owners
The study, which explores the next generation of entrepreneurs and business leaders, also compared the motivations of Gen Z for starting a business with those of established business owners.
Whilst both established business owners and Gen Z entrepreneurs shared similar motives for wanting to set up their business – namely being their own boss, financial independence and flexibility – they differed in other areas. One such area was financing their venture, with Gen Z owners more likely to turn to newer financing methods such as crowdfunding or business competitions, whereas established owners were more likely to rely on traditional methods such personal savings.
Furthermore, the study found that social media creators serve as the top influence for young entrepreneurs in the digital era, surpassing conventional factors such as family, friends, and government business support initiatives.
To read the full study, visit: https://www.markeluk.com/business-leaders-of-tomorrow