Ryan FowlerCamden has been named the best place in the UK to launch a startup, according to new research by SEO agency Startup Voyager. The London borough scored 7.4 out of 10, leading a list dominated by the capital’s districts but tempered by strong business survival rates in less urban regions.
The study analysed the 100 most populous UK local authorities using metrics including five-year business survival rates, employment growth, startup funding, and business formation rates. Despite a 54.4% drop in new business registrations since 2021, Camden led the rankings thanks to its high density of new firms—2,555 per 100,000 residents in 2023.
Islington and Hackney followed in second and third place, scoring 6.8 and 6.4 respectively. Hackney posted the highest five-year survival rate among the top three at 41.1%, while Islington saw 1,903 new businesses per 100,000 residents last year.
Outside of London, Solihull was the top-ranked location, placing fourth with a score of 5.7. Highland in Scotland also ranked strongly in fifth place, achieving a five-year survival rate of 45.9%, the highest among the top ten.
Merton came sixth with a 42.9% survival rate, followed by Armagh City, Banbridge and Craigavon in Northern Ireland, which posted the strongest overall survival rate at 50.4%. Shropshire ranked ninth, with a 50.9% survival rate despite a 71.6% fall in new business creation—one of the steepest declines in the report.
At the other end of the scale, Birmingham placed last with a score of just 0.7. The city experienced a 92.2% drop in new business creation since 2021 and recorded a survival rate of only 25%. Rhondda Cynon Taf followed in 99th with the lowest survival rate in the UK at 22.5%. Liverpool, Manchester, Glasgow and Leeds also featured near the bottom, reinforcing a wider trend of underperformance among major urban centres.
Peter Banerjea, CEO and co-founder of Startup Voyager, said: “The statistics released today show that the most populous areas aren’t necessarily providing the best environment for startup growth and sustainability. While London boroughs like Camden continue to attract high numbers of new businesses, the exceptional survival rates in areas like Shropshire and Highland tell an important story.
“We’re seeing two distinct patterns in the data. First, business creation has declined across all regions since 2021, likely reflecting the economic challenges and uncertainty of the past few years. Second, some smaller urban areas are outperforming major cities in terms of business survival.
“For entrepreneurs considering where to establish their startup, looking beyond the obvious big-city locations might offer better long-term prospects. The highest five-year survival rates appear in areas with less competition and potentially lower operating costs, which could be crucial factors during a startup’s critical early years.”
The data revealed that London boroughs claimed eight of the top 20 spots, while regions in northern England and Wales dominated the lower end of the rankings.
