September 15 ,2016 | by Thiago Kiwi

Research reveals UK cities with cheapest startup costs

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The UK’s cheapest cities for starting up a business have been revealed in research from business finance solutions company LDF.

Newcastle upon Tyne has been named the cheapest location in the UK for setting up a new business, costing an average of £17,008.

Highest

The report, which surveyed 850 small businesses across the country, found that the average start-up cost for UK businesses is now £27,520.

Amongst the cheapest cities for starting up a business are Southampton at £17,965, Liverpool at £18,880, Cardiff at £19,569, Leeds at £20,755, Sheffield at £21,490 and Edinburgh at £22,990.

London also appeared on the list, with the average cost of starting up a business in the city coming to a total of £28,742. However, this is still over £10,000 higher than the cost of setting up a business in Newcastle upon Tyne.

LDF’s report also identified the most expensive locations for starting up a business, with the highest costs being in Manchester at £44,733. This was followed by Glasgow at £41,936, Norwich at £39,910, Brighton at £30,901, Bristol at £30,895, Birmingham at £30,817 and Plymouth at £29,784.

Challenges

According to the research, some sectors are more expensive than others for starting up a business.

Leisure was found to be one of the most costly sectors for start-ups, requiring £79,137, along with motoring at £64,948. Marketing, communications and design businesses were revealed to be the cheapest start-ups, costing less than £7,000 on average.

Respondents also revealed the challenges they faced when setting up a business, with a third of SMEs stating that start-up funding was the biggest challenge. 

Thiago Kiwi

Thiago is the LSBF Blog Editor who manages news and features content on the site, and writes about business, finance, technology, education and careers.

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