The Best UK Cities for Business Growth

Key business metrics

Economic metrics

1. Leeds

Leeds comes in first place, offering a robust environment for business growth. The city recorded an impressive 205 high-growth enterprises in 2023 (see methodology section for definition), the highest in the region, highlighting its healthy environment for growing businesses. It also has around 20,000 new job openings, translating to 4,510 per 100,000 people, indicating workforce demand and economic activity.

While Leeds' five-year business survival rate sits at 38.5%, slightly below most other cities in the top 10, its steady regional salary growth (7.3%) point to ongoing investment and expansion across sectors.

2. Edinburgh

Edinburgh takes second place, thanks to a strong combination of economic stability and growth potential. It boasts the lowest unemployment rate among all cities at 2.6% and the highest salary growth, with an impressive 9.7% increase.

The Scottish capital also demonstrates strong entrepreneurial activity, with a 38.6% five-year business survival rate and 135 high growth businesses in 2023 (most recently available data), reflecting an opportunity for and resilience in the face of challenges. It offers competitive conditions like regional energy prices of 24.31p per kWh, enabling cost efficiency for new and expanding businesses.

3. Sheffield

Sheffield follows in third place, offering a mix of stability and opportunity for businesses. With a business survival rate of 44.6%, the highest in the research, and 16,696 new job openings, equal to 2,436 per 100,000 people, the Steel city is steadily building a strong economic foundation.

Sheffield's appeal is reinforced by its 7.3% salary growth, and low 3.4% unemployment rate, making it supportive for startups and companies. With energy costs at 23.86p per kWh, it offers an affordable option for entrepreneurs in Yorkshire.

4. Bradford

Bradford comes in fourth place. With a business survival rate of 41.2%, and nearly 17,000 new job openings, this often-overlooked Yorkshire city is rapidly establishing itself as a hub for both entrepreneurial and economic activity.

There’s also an impressive 7.3% salary growth in the region, further highlighting its potential as a supportive environment for startups and established firms alike. Combined with its affordability seen in its competitive energy costs at 23.86p per kWh, Bradford is proving itself as a rising contender for business growth across the UK.

5. Manchester

Manchester rounds off the top five. With 245 high growth enterprises in 2023, the highest behind only London, and a 7.2% regional salary growth per year on average, Manchester is truly a thriving business hub in the north.

Despite this, it does have one of the lowest five-year business survival rates in the ranking at 28.9%, suggesting that fierce competition might be making it tough for new businesses in this city.

Five Tips to Drive Business Growth

Growing a business takes more than ambition, it requires strategy, focus and the ability to adapt. Whether you’re a startup looking to scale or an established business aiming to expand, here are five key tips from Lisa Galley, Head of Business Banking Products, to help you grow your business with confidence.

Define a clear growth strategy

Before you can scale, you need clear direction. Set measurable growth goals, whether it’s increasing revenue, expanding into new markets, or growing your customer base. Use SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound) to monitor your progress and stay accountable.

Know your market inside out

Understanding your target audience is essential for long-term growth. Ongoing market research helps you uncover customer needs, monitor performance, and spot emerging trends, allowing you to refine your offerings and stay competitive in a constantly evolving market.

Build a seamless customer journey

Rather than focusing solely on a ‘sales funnel,’ think about the entire customer journey, from their initial contact with your business to becoming loyal clients. Utilising tools such as email marketing, customer databases, and basic data analytics can help maintain engagement and smoothly guide customers through each stage.

Invest in your people

Your employees are key to your business's success. Support their growth through training, development opportunities, and a culture that embraces innovation. As your team improves, your business will benefit as well.

Stay agile and financially smart

Growth isn’t always predictable, so it’s important to stay flexible and prepared. Managing cash flow carefully and looking for ways to spread costs sensibly, using tools like business credit cards can help smooth out short-term expenses. If you're planning to scale, consider options like business growth loans to invest in equipment, staff, or larger projects without straining day-to-day operations.

Sources & Methodology

You can find the full ranking and data via this link.

This analysis identified the best cities in the UK for business growth by analysing key factors that contribute to business success. Our ranking was based on the following metrics:

1. Number of high growth enterprises in 2023 (most recently available data) – Collected from ONS. In the ONS research, high growth enterprises are those businesses with an average growth in employment of greater than 20% per year, over a three-year period (between 2020 to 2023). The size threshold used to identify these businesses is that they have 10 or more employees.
2. New job openings – Sourced from LinkedIn, then calculated per 100,000 people in the population.
3. Business survival rates – Collected from ONS, looking at the 5-year percent figure for the city.
4. Salary growth - Collected from ONS, looking at Median Gross Weekly Earnings for 2023 and collecting the figure for 'percentage annual increase' for the city's region.
5. Unemployment rates - Collected from ONS, using the figure on unemployment rate age 16 and over from 2024 and 2025 for the city.
6. Number of office spaces - Collected from Office Hub per city, then calculated per 100,000 people in the population.
7. Regional energy prices - Collected from Energy Review, using unit rate Jan-March 2025 for the city’s region.