London named as one of the top cities to start a small business
Starting a business can be an exciting endeavour, but getting through the first five years is challenging.
The cost of rent, consumer demand, beating the competition, and keeping your cash flowing are often tricky things for SMEs to juggle. A major factor to your start-up’s success is the location you choose.
Based on factors including business survival rates, weekly salary, average rent, population, and the number of employed adults in the area, card payment solution’s provider Paymentsense worked out which UK cities offer the best environment for prospective SMEs.
It’s probably no surprise that the capital of the UK, which is often considered to be a leading global city, made the list.
London accounts for roughly 30% of UK GDP and is a major location for finance, both nationally and internationally. As well as this, it thrives in the media, technology and tourism sectors.
What may come as a surprise is that it came in at number 15 on the list - perhaps a reflection of the eye watering overhead costs faced by many small businesses starting out in the capital.
5-year start-up survival rate: 39.3%
Average weekly pay for full-time workers: £713.20
Average monthly cost to rent a 1-bed city centre apartment: £1,705.35
Number of employed adults: 3,817,203
Money available per week: £2,722,429,179.60
Index score out of 5: 1.36
The capital was pipped to the post by Birmingham, Manchester and Sunderland among others.
Sheffield was named the number one city to start a small business, based on its vital stats:
In 2019, Sheffield is the best UK city where you could start a business. The Steel City is known for its rich, industrial heritage. Although steel production has been in decline since the 1980s, Sheffield still develops advanced manufacturing technologies through its two universities and other research organisations. It’s also a major centre for sport and its public sector is a major employer.
5-year start-up survival rate: 44.9%
Average weekly pay for full-time workers: £542.10
Average monthly cost to rent a 1-bed city centre apartment: £585
Number of employed adults: 227,822
Money available per week: £123,502,306.20
Index score out of 5: 2.7