Price comparison website NerdWallet analysed data including business survival rates, rental costs, and monthly pay to compile the latest league table.
The Scottish capital was first, followed by Leeds and then Glasgow. Edinburgh scored highly in the majority of the categories assessed, with Glasgow benefiting from strong performances in areas including average monthly pay and the number of nearby universities.
The 2022 league table saw Leeds lose its top place, while it is the first time a Scottish city has taken the top spot.
Nic Redfern, finance director at NerdWallet, said: “It’s great to see more cities become business hubs, especially as the last two years has shown that workforces do not need to be tied to a physical office to do their work well.”
This year’s ranking included an assessment of how many residential premises have potential for full fibre connectivity.
Mr Redfern also said the inclusion of the data means the league table “better reflects” which cities are suited for the future of work.
“We strongly urge cities who are less prepared to invest in their fibre infrastructure among other things in order to be competitive with the large business centres across the country,” he stated.
The first quarter of 2022 saw an increase in the number of companies being established, which NerdWallet said was a sign that entrepreneurs' determination to start businesses remains high “despite the many challenges they face”.