Research conducted by Capital Enterprise shows that Manchester is the most popular city outside London to start a UK tech business.
Last week, UK Chancellor Rachel Reeves announced the government’s plan to “kick start” the UK’s faltering economic growth, including by building “Europe’s Silicon Valley” between Oxford and Cambridge.
However, new research commissioned by ecosystem experts Capital Enterprise shows that Manchester, Liverpool and Leeds are among the top locations for UK entrepreneurs to start new businesses.
Manchester was the second most-favoured city behind London when decision-makers at UK technology businesses were asked which UK city they would choose if they started a new business.
Liverpool was ranked five out of more than 40 cities for starting a new business, ahead of Oxford, Cambridge and Bristol.
Leeds was the 11th most popular location to start a new business.
New £150m Aviva Investors fund to back early-stage tech startups
Research showed that 28 per cent of leaders believe Manchester would be the best city to start a new business – the same percentage of leaders also believe London would be the worst.
“Tech entrepreneurs are increasingly drawn to the North’s growing innovation hubs, not just for affordability but for the strong networks of talent, transport links and business support they provide,” said Jonny Clark, Capital Enterprise CEO.
“By enabling founders to access funding, support and world class talent, programmes like the Turing Innovation Catalyst AI Accelerator are vital in stimulating these dynamic startup ecosystems.”
Liz Scott, director at Turing Innovation Catalyst, added: “This new research reflects what we see on the ground: tech entrepreneurs are gravitating towards Greater Manchester because it combines access to talent with leading research hubs and a close-knit business support ecosystem.
“By empowering entrepreneurs and innovators from across the region, Turing Innovation Catalyst Manchester plays a key role in connecting startup founders with the mentorship and investment they need to succeed.”
Research by Capital Enterprise also found that, despite North West cities being among the favourite places to start a new business, more than half (55 per cent) of business leaders believe the UK government could do more to encourage start-ups outside London and the South East.
Last month Mayor of Greater Manchester Andy Burnham announced a 10-year growth plan which he said could add £13bn to the UK economy.
How much have Dragons ACTUALLY invested since ‘damaging’ BBC show began?