Brighton and Hove named in top 20 best cities in the UK for entrepreneurs in 2025, according to new study

The research team at Businessmagnet Ltd analysed 100 cities and towns across the UK to identify where entrepreneurial success is most likely in 2025. Drawing on publicly available data from the Office for National Statistics (ONS) and the Scottish Government, they examined six essential indicators to paint a picture of each location’s business environment.

Each factor was equally weighted to ensure fairness: business birth rate (25%), number of active businesses per 10,000 residents (20%), business death rate (10%), percentage of high-growth firms (20%), employment rate (15%) and self-employment rate (10%). These were then standardised and compiled into a final score, with 100 being the maximum.

Brighton and Hove, ranked 19th with a score of 51.98, stands out as a creative and independent hotspot on the UK’s south coast. While its business birth rate of 10.1% sits mid-table (78th), the city punches above its weight in several other key areas. It boasts 549 active businesses per 10,000 residents – the 12th highest in the country – and has a strong showing when it comes to high-growth companies, with 4.9% of firms scaling up rapidly (30th overall).

Where Brighton and Hove truly excels is in self-employment, with a staggering 19.6% of the working population running their own businesses – the second-highest rate in the entire study. This speaks volumes about the city’s entrepreneurial culture, driven by freelancers, creatives, and independent traders. While the employment rate is slightly lower at 75.7% and the business death rate a bit higher at 12%, Brighton and Hove continues to offer fertile ground for those who want to take charge of their own ventures and thrive in a vibrant, alternative business scene.

Dartford ranked 1st overall with a score of 67.02, thanks to an industry-leading employment rate of 86.4% and nearly 592 active businesses per 10,000 residents. Reading followed in 2nd place, standing out for its 7.2% share of high-growth businesses — the highest in the top 10 — and an equally robust employment rate of 86.1%.

London took 3rd spot with the most active businesses in the top 10 (646 per 10k residents) and the highest self-employment rate at 15.6%. Watford, ranked 4th, paired strong business density with a low death rate and an impressive 15.6% self-employment figure. Rugby and Milton Keynes shared 5th place, but Rugby led in business density (670 per 10k), while Milton Keynes stood out with a 6.3% high-growth rate. Cheltenham came 7th, shining with a low business death rate (9.2%) and 6.6% of firms growing fast. Slough placed 8th, boasting the highest startup rate in the top 10 at 13.7%, while St Albans and Manchester rounded out the top 10 list.

And the worst places?

Not every city is ripe for a startup dream. According to the same study, the bottom 10 for entrepreneurs included Belfast, Rotherham, Durham, Dundee, Gosport, Chesterfield, Wolverhampton, Hartlepool, Lancaster, and Mansfield. These areas typically struggled with low business creation rates, fewer high-growth firms, and weaker employment indicators.

Where did other major cities rank?

A few other big names appeared further down the list. Oxford ranked a respectable 18th, with Edinburgh close behind in 31st. Bristol came in 32nd, followed by Leeds (35th), Liverpool (45th), and Cambridge (50th). Birmingham landed in 55th, with Nottingham at 63rd, Leicester 70th, and Sheffield near the bottom in 87th place.

Top 10 list of the best UK cities for an entrepreneur: