UK Chancellor Rachel Reeves recently announced the government’s plan to “kick start” the UK’s faltering economic growth, including by building “Europe’s Silicon Valley” between Oxford and Cambridge. However, new research commissioned by ecosystem experts Capital Enterprise shows that Liverpool is among the top locations for UK entrepreneurs to start new businesses. Liverpool was ranked five out of more than 40 cities for starting a new business, ahead of Oxford, Cambridge and Bristol.
Key findings:
- Liverpool was in top 5 of preferred cities to start a new business
- 100% said local talent availability was important, with over half citing it as a key factor in deciding where to build and grow
- 84% of those surveyed feel an area’s transport & connectivity is either ‘very important’ or ‘essential’
- 44% listed entrepreneur and business support as a factor that would influence choice of location
- 28% of leaders believe Manchester would be the best city to start a new business
- 28% also believe London would be the worst city
The research highlights the potential for a cluster of cities in North West England to play a key part in boosting the UK’s start-up sector and its overall economic growth.
Jonny Clark, leader of Capital Enterprise and Director of Liverpool Slush’D and Startup Grind, says:
“Tech entrepreneurs are increasingly attracted to the North West’s expanding innovation hubs, particularly across Liverpool and Merseyside. It’s not just about affordability – these hubs offer rich networks of talent, strong transport connections and robust business support. The programmes we help to deliver, such as the Turing Innovation Catalyst AI Accelerator in Manchester, play a crucial role in helping founders to access funding, world-class talent and tailored support, which in turn fosters thriving startup ecosystems. This combination empowers entrepreneurs to reach their full potential, creating jobs, boosting economic growth, and shaping the region’s future.”
Liverpool-based startup Gigmate, which offers bespoke live event listings, connections via music preferences and a safe member matching service, has recently benefited from being part of Turing Innovation Catalyst Manchester’s most recent cohort.
Gavin Sherratt, CTO of Gigmate, says:
“Liverpool is a creative destination and it’s entrepreneurial – people are tenacious and always trying new things. Scousers see an opportunity and think ‘how do I accelerate it?’ It also has a buzzing ecosystem with events happening virtually every week. But it’s more than that – it’s almost like a self generated, self funded ecosystem. Founders fund each other. There is a community aspect, a circular economy and we’re all open and honest with each other. Founders speaking to the same investors are giving feedback on investment.”
Research by Capital Enterprise also found that despite North West cities being among the favourite places to start a new business, more than half (55%) of business leaders believe the UK government could do more to encourage start-ups outside London and the South East. Nearly eight in ten (78%) of business leaders questioned said that business support, incubators and accelerators are “very” or “extremely” important in encouraging new business growth.