The happiest places to be a business owner

* The number of co-working spaces and activities/games venues are scored as the number per 10,000 capita. The numbers in the table are the raw numbers.

**Information sourced from the ONS.

The top 10 happiest cities to be a business owner (cost metrics)

1. Liverpool

Liverpool was ranked as the top UK city for happy business owners, offering a strong combination of work-life balance, flexible workspace and social opportunities. With an average work commute of just 28 minutes one way, entrepreneurs can spend less time travelling and more time focusing on their business.

The city also has 26 co-working spaces, with an average annual cost of £1,484, making flexible working accessible for both startups and established businesses. Beyond the office, Liverpool boasts 149 activities and games venues, providing ample opportunities for team socials and networking. Combined with a happiness score of 7.3 out of 10, these factors make Liverpool a standout location for business owners looking to thrive both personally and professionally.

Liverpool has seen sustained investment in culture, creativity and public engagement in recent years, most notably through hosting the Eurovision Song Contest 2023, which delivered a £54.8 million boost to the local economy. Beyond its cultural significance, events of this scale help strengthen the city’s business ecosystem by increasing footfall, boosting hospitality and retail sectors, and creating more opportunities for local businesses.

2. Nottingham

Nottingham ranks in second place, offering a supportive environment that balances work, social life and wellbeing. The city’s average commute of 30 minutes one way helps to ensure business owners can maximise their time for both work and personal priorities.

Nottingham provides 22 co-working spaces, averaging £1,831 per year, giving business owners access to professional environments without the long-term overheads of traditional offices. The city also features 101 activities and games venues, offering plenty of opportunities for team bonding and relaxation. With a city-wide happiness score of 7.2/10, Nottingham combines accessible workspace, social infrastructure and work-life balance, making it a great environment for entrepreneurs.

3. Exeter

Exeter follows in third place, providing a balanced and supportive environment for new business owners. The city has nine co-working spaces, averaging £1,805 per year, and retail rental prices cost £17 per square foot per year, reflecting its smaller, commercial market. Entrepreneurs face an average commute of 32 minutes, a reasonable time for balancing work and personal life.

For social and networking opportunities, Exeter has 39 activities and games venues, giving teams plenty of options to connect and unwind outside of work. Despite its smaller size, the city has a happiness score of 7.3/10 on average, showing that work-life balance and entrepreneur wellbeing aren’t dependent on city size. This combination of flexible workspace, social opportunities and manageable commuting makes Exeter an appealing location for business owners seeking a supportive and balanced environment.

4. Southend-on-Sea

Southend-on-Sea ranks fourth for business owner wellbeing, with short commutes, affordable workspace and social options. The average commute is 33 minutes, helping entrepreneurs focus more time on their business and personal priorities.

The city has four co-working spaces, averaging £1,854 per year, and the most affordable retail rental prices in the ranking, at £7 per square foot per year, making it particularly attractive for small retail startups. Social opportunities are also well supported, with 51 activities and games venues for team bonding and leisure. Combined with a local happiness score of 7.3/10, Southend-on-Sea provides a balanced environment where business owners can thrive without sacrificing lifestyle.

5. Norwich

Norwich rounds out the top five, offering manageable commuting and strong social infrastructure for business owners. Recognised for its UNESCO City of Literature status, reflecting its strong creative and intellectual culture, Norwich is the perfect environment that can foster fresh thinking and innovation among entrepreneurs.

Commute times in the city average 32 minutes, meaning business owners and workers can balance both work and personal life effectively. Co-working options are limited, with only three options which may be contributing to a higher average cost per year (£2,664 per year). However, retail rental prices average £10 per square foot per year, offering a more affordable entry point for businesses in a smaller, niche market.

Despite having fewer workspaces, Norwich has 88 activities and games venues, supporting networking, socialising and team events. With residents reporting a happiness score of 7.1/10 on average, Norwich demonstrates that entrepreneur wellbeing and work-life balance can be maintained even in smaller cities with fewer office options.

Summary

While Liverpool takes the top spot overall, the findings show that business owner happiness isn’t limited to a single location. Each city in the ranking performs strongly in different areas, meaning there are multiple ways to create a positive and sustainable working environment wherever you’re based.

The most expensive UK cities to be a business owner

Not all UK cities are equal when it comes to the cost of running a business. From retail rental prices to co-working space fees, the overheads entrepreneurs face can vary dramatically depending on location. Below, we've highlighted the most and least expensive cities for business owners in the UK.

The top five most expensive places to be a business owner:

The top five least expensive places to be a business owner:

London tops the list as the most expensive UK city for business owners, with retail rents costing £31 per square foot per year, and co-working spaces averaging £3,960 annually.

Plymouth follows in second, where co-working costs are notably high at £3,504 per year, reflecting the continued attraction of coastal cities for both work and lifestyle.

Brighton and Manchester also rank highly, with retail costs of £29 and £26 per square foot respectively, and co-working spaces costing £1,978 and £2,066 per year, reflecting a strong demand from a growing community of entrepreneurs and established brands.

At the other end, more affordable cities make it easier for business owners to manage overheads. Southend-on-Sea stands out as the least expensive city in the ranking, with retail rental prices of just £7 per square foot, and co-working spaces averaging £1,854 annually. Cities like Liverpool, Aberdeen, Bradford and Leicester also offer lower costs, potentially helping entrepreneurs invest more in their teams, growth and wellbeing.

These differences highlight a clear trade-off between operating in high-cost, high-opportunity cities compared to smaller, regional locations with lower overheads. Choosing a location to base a business isn't just about opportunity, it's also about affordability, and while high-cost cities offer access to larger markets and greater exposure, more affordable locations give entrepreneurs the room to grow sustainably without compromising work-life balance.

How can business owners alleviate stress?

Being a business owner can be incredibly rewarding, but it also comes with its fair share of pressures. Managing finances, leading a team, and planning for growth can all add to the stress of running a business. To help entrepreneurs stay balanced and in control, Lisa Galley, Head of Business Banking Products at The Co-operative Bank, shares practical tips for reducing stress and managing the demands of business ownership.

Lean on support

Many owners already have strong routines in place, but knowing that there is support to lean on - whether that’s trusted partners, additional resources, or external expertise - can make a meaningful difference when capacity is stretched.

Make time for social connection

Running a business can sometimes feel isolating, particularly for solo founders. Making time for networking events, industry meetups, or even informal team socials can help build a support network. Connecting with other entrepreneurs allows you to share experiences, learn from others, and gain reassurance that the challenges you face are common.

Prioritise financial planning

Financial uncertainty is one of the biggest sources of stress for business owners. Maintaining a clear view of your financial position remains critical. Understanding cash flow, upcoming commitments and potential risks helps you stay in control and act with confidence

Use financial tools responsibly

Financial tools such as business loans or credit cards can be useful for managing cash flow when used carefully. For example, a short-term loan might help fund equipment or expansion, while a business credit card can help smooth out temporary gaps between incoming payments and outgoing expenses. When used thoughtfully and planned for within a budget, these tools can provide flexibility and reduce financial strain, rather than adding to it.

Sources and Methodology

This analysis identified the cities in the UK with the best conditions for business owners to be happy by analysing key factors that contribute to entrepreneur wellbeing. Our ranking was based on the following metrics:

1. Time spent commuting – Collected from Numbeo.
2. Number of coworking spaces – Sourced from Coworker.com, then calculated per 10,000 residents.
3. Activities and games venues for work socials – Collected from TripAdvisor, then calculated as number of venues per 10,000 residents.
4. Price of retail rental per annum square foot – Collected from Zoopla, then calculated using the average cost of retail rental per month and divided by the average sq. ft to find the average price per sq. ft each month, and multiplied by 12 to find the average cost per sq. m per year.
5. Price of coworking office space per annum – Collected from Coworker.com, 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 by multiplying the average number by 12.
7. Happiness score – Collected from ONS. Happiness scores are city-wide, reported by local residents.

For the most and least expensive cities for business owners, the cost per sq ft per annum and the cost of a co-working space per annum have been indexed to create the rankings in the table.