Report shows Manchester is most popular UK city outside London to start a tech business | Greater Manchester Business Board

Posted by author February 7, 2025 Bussiness

A new report has named Manchester the most popular UK city outside London to start a tech business.

Business innovation specialist Capital Enterprise says its poll of decision-makers at UK technology businesses showed Manchester and Liverpool were among the top locations for UK entrepreneurs to start new businesses.

Capital Enterprise aims to drive investment across the UK and close the gap between the London-Oxbridge Golden Triangle and the rest of the country. Its members include investors, universities, corporates, business incubators and public sector bodies. Its latest research comes just days after Chancellor Rachel Reeves vowed to turn the Oxford-Cambridge corridor into Europe’s Silicon Valley.

The organisation asked entrepreneurs which UK city they would choose if they started a new business.

Manchester was the top regional city, with 28% of leaders believing it would be the best city in which to start a new business. While London topped the poll nationally, some 28% of leaders also believed London would be the worst city to start a business.

Every business claimed the most important factor for them was the availability of local talent and more than half said that was a key factor in deciding where to build and grow.

84% of those surveyed felt that transport and connectivity were either ‘very important’ or ‘essential’ to their decision-making, while 44% listed entrepreneur and business support as a factor that would influence their location choice.

Other Northern cities to score strongly as potential business locations were Liverpool, in fifth place, and Leeds in 11th. More than half of the business leaders polled (55%) said the UK government could do more to encourage startups outside London and the South East.

Jonny Clark, who leads Capital Enterprise, said: “Tech entrepreneurs are increasingly drawn to the North’s growing innovation hubs, not just for affordability but for the strong networks of talent, transport links and business support they provide. By enabling founders to access funding, support and world class talent, programmes like the Turing Innovation Catalyst AI Accelerator are vital in stimulating these dynamic startup ecosystems. These factors propel founders to fulfil their potential to become major employers, drive economic growth, and shape the region’s future.”