Edinburgh has been revealed as the third most attractive city to launch a new business in 2025, according to new business-focused research.
With inflation and the cost of goods, energy and materials continuing to rise, and commercial property prices also on the up, prospective business owners have to think carefully about when and where to plant their flag.
To provide insights into where new ventures might thrive, Approved Business Finance has revisited its business-focused analysis of the UK’s 60 largest cities. By examining a multitude of data points, including the average price of commercial properties via Rightmove, cost per square foot, GDP, education levels, high-speed internet coverage and average salary, we’ve identified the cities offering the most potential—and those presenting the greatest challenges—for new businesses in 2025.
The 20 cities offering the most potential for new businesses
| Rank | City | Avg cost per sq ft of commercial space | Share of high-speed internet connections | No. of Business closures per 10,000 population | Total index score |
| 1 | Oxford | £36 | 89.7 | 34.3 | 68.97 |
| 2 | Bristol | £57 | 89.1 | 47 | 65.63 |
| 3 | Edinburgh | £48 | 89.7 | 42.7 | 65.56 |
| 4 | Nottingham | £18 | 90.7 | 41.2 | 65.31 |
| 5 | Cardiff | £87 | 92.6 | 44.2 | 63.53 |
| 6 | Aberdeen | £11 | 83.3 | 53 | 63.47 |
| 7 | Norwich | £21 | 86.8 | 39.3 | 63.31 |
| 8 | Glasgow | £32 | 87.8 | 39.5 | 63.26 |
| 9 | Leeds | £39 | 89 | 54.3 | 62.55 |
| 10 | Manchester | £58 | 88.7 | 55.1 | 62.40 |
| 11 | Coventry | £19 | 89.9 | 49.2 | 62.00 |
| 12 | Slough | £32 | 87.2 | 67.2 | 61.99 |
| 13 | Liverpool | £18 | 89.3 | 47.1 | 61.88 |
| 14 | Crawley | £38 | 92.2 | 41 | 61.52 |
| 15 | Derby | £14 | 89.7 | 42.1 | 61.52 |
| 16 | Reading | £79 | 88.4 | 61.3 | 60.52 |
| 17 | Sheffield | £8 | 79.6 | 36.1 | 60.43 |
| 18 | Blackpool | £42 | 87.2 | 42.5 | 59.79 |
| 19 | Chatham | £14 | 89.8 | 46.2 | 59.67 |
| 20 | Cambridge | £328 | 91.1 | 37.8 | 58.94 |
Where is the best city to start a business?
According to the research, Edinburgh is the third best place in the UK to start a new business, with an average square foot cost of commercial spaces cost standing at £48. Almost 90% of businesses in Edinburgh are currently supplied with high-speed internet, beating out most other cities across the country.
In second place was Bristol, just ahead of Edinburgh with an index score of 65.63. Oxford ranked as the best place in the UK to start a new business. The famed university city offers commercial space for an average of £36 per square foot, making it one of the most affordable commercial options, per square foot, across the UK.
Commenting on the research, commercial director of Approved Finance Group, Mark Kozo, said:
“Starting a business in 2025 will be incredibly daunting, with inflation still a major concern for business owners and commercial property prices at historic highs.
“The cities we’ve identified, such as Oxford and Bristol, offer great potential for growth, but business owners must always consider their specific needs and resources before making a decision.
“Options like commercial mortgages can help entrepreneurs invest in the perfect location, while business finance offers breathing room designed to provide businesses with the funding they need to maintain daily operations and fuel growth.
