Edinburgh and Glasgow have been named as two of the leading ten entrepreneurial hubs outside of London, research out today reveals.
Start-ups in Edinburgh received £937,123 from UK government-backed The Start Up Loans Company throughout 2016 – up 40 per cent on the previous year and placing the capital at number six in the league table of entrepreneurial hotspots.
The region is sending out a strong message that it’s open for businessTim Sawyer
Glasgow came in at number nine, with its start-up businesses receiving £860,015 in funding last year – 89 per cent ahead of the previous 12 months.
Birmingham topped the list of entrepreneurial hubs, with a 39 per cent rise in funding to just more than £2 million, with Cornwall in second place on £1,328,725.
Today’s data showed that northern English cities dominated the top ten spots, with Durham, Sheffield, Leeds and Manchester receiving a total of £4.2m in funding.
Small business minister Margot James said: “From retailers in Birmingham to beauticians in Glasgow, Start Up Loans give people the chance to be their own boss. The UK has an excellent record in creating businesses and we want to make sure start-ups outside London can access the finance they need.
“This government recognises the funding challenges facing British start-ups, and is addressing this as part of our modern industrial strategy.”
Tim Sawyer, chief executive of The Start Up Loans Company, said: “The Northern Powerhouse is steaming ahead when it comes to entrepreneurial spirit, but we can’t neglect the fact that start-up growth outside of London is being led by businesses in Birmingham.
“A boost in government and private funding for infrastructure and industries in former manufacturing hubs like Durham has brought with it a renewed start-up fever north of the capital. And the region is sending out a strong message that it’s open for business.”
Start-ups in London received total funding of £23m in 2016, today’s data shows. Durham was the top ten’s fastest growing entrepreneurial city, receiving £1.2m, a massive 243 per cent surge on 2015.
Sawyer added: “Our data shows there’s no start-up owner ‘type’. Many of our loan recipients aren’t aspiring to be the next tech-giant, but they do want to pursue a career as their own boss.
“Motivators can vary from wanting a better work life balance, the opportunity for an improved income or the desire to turn something they love into a career.”