Edinburgh fails to wow in list of best UK cities to start a business in 2023, while Glasgow makes top five

Edinburgh has been relegated to an also-ran and far behind Glasgow in a list ranking the best place in the UK to start a business in 2023 – which selected Manchester as the top choice.

The new study by independent digital agency Dark Horse has ranked 34 cities, with key criteria including the quality of life, the rate of new businesses opened, internet quality, local education, transport services and gross value added. “Location plays a significant role in setting up a business and should always be a top consideration – whether your business is physical or online,” it added, citing factors such as access to customers.

In terms of Scotland’s performance, Aberdeen came in last place overall at 34, with Edinburgh not far behind, “surprisingly” in the 24th spot according to Dark Horse, with Dundee just ahead at 22. Glasgow, however, took prestigious fifth place, behind Birmingham, Sheffield and London, that were, in order, behind Manchester.

Manchester-based Dark Horse said it is “no secret that UK businesses have faced significant challenges in recent years; with Brexit, general elections, a global pandemic and the rising cost of living, every industry and sector has been impacted in some way”. A separate analysis of business insolvencies published earlier this month found Scotland recorded the biggest rise out of all UK nations last year.

In terms of Scotland’s performance, the Scottish capital was 'surprisingly' in the 24th spot, while Aberdeen was last. Picture: Ian Georgeson Photography.

However, Dark Horse highlighted signs of optimism, with analysis of data from Companies House revealing that a record 202,130 businesses were set up in the UK in the first 12 weeks of 2023 – a year-on-year rise of 6.5 per cent. The agency added that although the UK economy is predicted to contract by around 0.5 per cent in 2023, it is also expected to avoid a full technical recession, with growth expected to return in 2024 and continue in 2025.

Growth

Another recent survey showed that Scottish small businesses have outlined a positive prognosis, with the proportion that are growing remaining stable, with the percentage of those scaling back or struggling to survive plummeting. The research by Novuna Business Finance also found that 28 per cent of such firms were expecting significant or modest expansion in the next three months – a figure that has remained stable for the past four quarters.

James Maxfield, data expert at independent digital agency Dark Horse who analysed the results, which pulled together data from the Office for National Statistics, Numbeo, the Fair Internet Report and the Department For Transport, said: “In the past, location was considered everything in business – from logistics to networking it was the be-all and end-all, and to be successful you had to head south. But that’s just not the case anymore. Investment in infrastructure, talent acquisition, culture and the digital age has made it possible to set up a business pretty much anywhere in the UK.

“This data clearly shows that businesses have the absolute potential to boom across the UK. There is no doubt that with effective investment and opportunities, businesses can grow and cities can thrive as a result.”