Several major North of England cities have been highlighted as prime locations for launching a new business, according to a new national study by specialist insurer Markel Direct.

The report, which analysed 46 of the UK’s largest cities on factors including business closure rates, five-year survival rates, and access to gigabit-capable broadband, positioned several Northern urban centres favourably in the national ranking.

While Belfast topped the overall list (scoring 34 out of 40), the North West and North East showed significant strength, with Stockport and Newcastle upon Tyne featuring strongly in the top 10.

Stockport and Wakefield Lead Northern Cities

Stockport, in Greater Manchester, achieved the highest ranking of any city in the North, securing fifth place nationally with a total score of 29.2. The city’s performance was largely driven by the endurance of its businesses, achieving a high score of 9.2 out of 10 for its five-year start-up survival rate. This indicates a robust environment for new ventures to establish themselves beyond their pivotal early years.

Wakefield, in West Yorkshire, secured the eighth spot with a total score of 28.2, ranking higher than both Leeds and York. Wakefield performed consistently across the index and showed strength in digital access, with a score of 6.8 out of 10 for its gigabit-capable broadband coverage. This score is a significant advantage for modern, digitally-focused start-ups.

Newcastle upon Tyne was close behind in sixth place with 28.6. The city excelled in the economic factor, achieving a strong score of 8.8 for the average annual growth of Gross Disposable Household Income (GDHI), signalling a healthy local economy for consumers and potential business customers.

Small businesses are the backbone of the UK, and many of the cities in our study are ideal locations for start-ups to thrive. Whilst running a successful business is influenced by factors beyond solely location, having access to superfast internet, a local talent pool and business support networks can provide your venture with the best start in the pivotal early days.

Digital and Economic Disparities

The study also highlighted some trade-offs in the region. York scored impressively well for business longevity, with a 9.6 out of 10 for its five-year survival rate and a low business closure rate. However, the city’s overall ranking was hampered by its low score for gigabit broadband coverage (2.0), suggesting a significant infrastructure challenge for high-tech start-ups. Conversely, Leeds scored well on economic growth and digital access but showed a lower five-year survival rate than its counterparts.

Generation Z Approaches Funding Differently

The study also included analysis on how the next generation of entrepreneurs are approaching business. It found that while Gen Z and established business owners share core motivations like being their own boss, achieving financial independence, and demanding flexibility, their methods differ significantly.

Gen Z entrepreneurs are more likely to turn to newer financing methods such as crowdfunding or business competitions, in contrast to established owners who typically rely on personal savings.

Furthermore, the research revealed a shift in influence, with social media creators now serving as the top source of inspiration for young entrepreneurs, surpassing conventional influencers like family, friends, and government business support initiatives.