These are the best cities in England for small businesses, according to new study

A new study by UK company formation experts YOUR COMPANY FORMATIONS has revealed the top-performing cities in England for small business success this year, shedding light on the places where entrepreneurs are most likely to thrive.

To find out England’s most small business-friendly cities, the study analysed 50 cities using 13 weighted metrics, each chosen to reflect key aspects of business sustainability, affordability, and opportunity. The data covers everything from new business startups and 5-year survival rates to internet costs, coworking availability, and student population density, giving a holistic view of each city’s ecosystem.

Each metric was scored out of 100 and weighted based on its importance to small business success. Business fundamentals like startup numbers, survival rates, and unemployment were given the greatest emphasis, while cost of living and infrastructure rounded out the picture. Data was sourced from reputable organisations including the Office for National Statistics (ONS), Broadband.co.uk, Coworker.com, Numbeo, and the Higher Education Statistics Agency (HESA).

1. Bury – Total Score: 56.04

Bury takes the crown as the best city in England for small businesses in 2025, and it's easy to see why. With a 5-year business survival rate of 93.8% (ranking 9th) and a low unemployment rate of just 3.4% (11th), this Greater Manchester town offers a stable environment for new ventures. While it doesn’t boast the highest number of startups (615, ranking 40th), it makes up for that with relatively few business deaths (610, ranking 9th), showing that businesses that do launch in Bury tend to stick around.

But it’s not just about survival. Bury ranks second in the country for active employees per 100,000 residents (13,367), showing a strong local workforce. Coworking space availability is also solid (8 spaces per 100,000, ranking 7th), and students are a healthy presence too, with over 20,000 per 100,000 residents. At £1,186 per month, rent is mid-range, while public transport costs are among the lowest in the top 10 (£78, ranking 4th). Add in reliable internet at a modest 53 Mbps and affordable utility bills (£159.77), and Bury’s blend of value and stability earns it the top spot.

2. Salford – Total Score: 53.79

Coming in second is Salford, just a stone’s throw from Bury and another Greater Manchester powerhouse. It boasts the highest number of active employees in the country, 14,522 per 100,000 residents, and one of the strongest 5-year business survival rates at 94% (6th). Business is clearly booming, with 1,510 startups (12th) and 1,380 employer births (11th). However, Salford also suffers from a relatively high number of business closures (1,465, ranking 37th) and a 5.2% unemployment rate, which places it near the bottom in that category (38th).

Despite these hurdles, Salford's infrastructure and affordability make it appealing. The city offers the second-best coworking space availability (14 per 100,000), and it ranks third for student population, with nearly 30,000 students. While the average rent (£1,700) and utility costs (£168.92) are on the high end, internet is surprisingly cheap at just £22.50, the most affordable in the entire study. For businesses needing a large and skilled workforce in a vibrant city, Salford is a smart bet.

3. Wakefield – Total Score: 50.71

Wakefield claims third place with a compelling combination of low costs, strong workforce access, and business growth potential. The city has one of the lowest unemployment rates in the study (2.9%, ranking 5th) and a respectable business survival rate of 92%. It’s doing well for startups too, with 1,255 new businesses (19th) and 1,110 employer births (17th). While business deaths (1,215) rank 32nd, the overall climate is still positive for growing enterprises.

Wakefield also benefits from strong infrastructure, including one of the top internet speeds in the top 10 at 64 Mbps (11th). The workforce is robust, with 12,522 active employees per 100,000 (3rd), and the city offers reasonable coworking access (8 spaces, ranking 8th). Rent sits at £1,600 (38th), which is a little steep, but lower public transport (£84) and utility (£162.63) costs help balance the books. The student population is smaller than others in the top 10, but for business owners after fast connections, low unemployment, and decent value, Wakefield fits the bill.

4. Stockport – Total Score: 50.41

In fourth place is Stockport, a rising star for entrepreneurs who value speed and access. The city boasts the second-fastest internet in the study, clocking in at 103 Mbps, and has a strong startup base, with 1,485 new businesses (13th) and 1,410 employer births (10th). A 93% survival rate (15th) and a decent unemployment rate of 3.2% (10th) point to a city with serious staying power.

Stockport doesn’t just tick the boxes for digital readiness; it also ranks well for workforce access, with 9,126 active employees per 100,000 (4th). Coworking space is plentiful (9 spaces, ranking 5th), though the student population is on the lower side (7,962, 28th). Rent is relatively high at £1,550 (36th), and utility costs aren’t far behind (£167.56). Still, for businesses in tech or services that rely on digital infrastructure and a capable workforce, Stockport delivers.

5. Manchester – Total Score: 48.76

Manchester lands in fifth place, carried by its impressive startup and employer birth numbers, ranking 3rd in both, with 3,630 and 3,475, respectively. Despite a high number of business deaths (3,215, ranking 47th) and a 5.1% unemployment rate (37th), the city’s entrepreneurial energy remains undeniable.

Manchester leads England in coworking space density (24 locations per 100,000) and has a large student population (21,304 per 100,000, ranking 6th). Fast internet (72 Mbps, 7th) and strong workforce access (6,111 employees per 100,000, 15th) make it a hotbed for innovation. However, it comes at a cost, as rent is £1,997 (48th), and utility bills are the highest in the study at £174.91. Manchester is perfect for fast-paced businesses with big ambitions and a tolerance for higher overheads.

6. Doncaster – Total Score: 45.97

Doncaster ranks sixth and stands out as a strong contender for budget-conscious entrepreneurs. It boasts 1,570 startups (11th) and 1,415 employer births (9th), along with a low unemployment rate of 3.2% (9th). While business deaths (1,730) rank 39th, the city still shows signs of healthy activity.

Rent is refreshingly low at £1,000 (9th), and transport costs are affordable (£82, 10th). Internet speed is slower at 50 Mbps (37th), and coworking access is limited (4 spaces, ranking 36th), but Doncaster's combination of low costs and strong business activity makes it an attractive place to set up shop, especially for firms keeping a close eye on their overheads.

7. Stockton-on-Tees – Total Score: 45.85

Stockton-on-Tees slides into seventh place, offering a blend of affordability and stability. Rent is a bargain at just £767 a month (4th), and utilities and public transport are similarly cost-effective. The city holds a 93% business survival rate (16th) and keeps business deaths in check (665, ranking 11th).

While the city isn’t bursting with startups (745, ranking 35th) or students (3,127, 45th), it does offer decent workforce access (7,129 active employees, 10th) and coworking options (6 spaces, 16th). With slower internet (50 Mbps, 40th), it may not be ideal for tech-heavy ventures, but for retail, services, or trades, Stockton-on-Tees offers great value for money.

8. Chelmsford – Total Score: 45.62

Chelmsford earns eighth place with one of the highest survival rates in the country, 94.3% (3rd), and a very low unemployment rate of 2.9% (3rd). While it lags in new business creation (540, ranking 44th), the city shines in workforce access (7,268 active employees, 9th) and boasts the highest student population density (31,562 per 100,000).

That said, Chelmsford comes at a steep price. With average rent of £2,033 (49th) and public transport costs of £95 (49th), it’s one of the most expensive cities in the study. For businesses with the budget to spend, it offers a stable, well-educated market—but for startups on a shoestring, it might be a tough nut to crack.

9. Solihull – Total Score: 45.06

Ninth-place Solihull presents a balanced picture. It boasts a solid 94% business survival rate (7th) and maintains low business deaths (880, 19th). The city ranks well for infrastructure too, with 8 coworking spaces per 100,000 (6th) and a strong workforce (8,814 employees, 5th).

However, the cost of doing business here is notably high. Rent averages £1,595 (37th), utilities are pricey at £169.66 (41st), and public transport costs £90 per month (41st). Student numbers are also low. Solihull is best suited for established small businesses that need infrastructure and talent, but not necessarily tight budgets.

10. York – Total Score: 44.85

York rounds out the top 10, offering a strong business survival rate of 93.9% (8th) and the lowest unemployment rate in the study at 2.5% (1st). Business deaths are low (715, ranking 12th), which signals a stable environment for companies.

But it's not without its drawbacks. New business creation is sluggish (700 startups and 650 employer births, both ranked 37th), and internet speed is the slowest in the top 10 at just 43 Mbps (48th). Rent is also high at £1,950 (47th). However, York offers good coworking access (7 spaces, 10th) and a healthy student population (20,398, 11th), making it a strong candidate for businesses looking for a steady, if pricey, base.

At the other end of the scale, Harlow, Wolverhampton, Liverpool, Southend-on-Sea, Luton, and Nottingham struggled, each scoring under 33, suggesting they may present more challenges for startups in 2025.

Top 20 list of best cities in England for small businesses: