3 hours Ago By [email protected] (Alistair Houghton)
Manchester is the most popular UK city outside London to start a tech business, a new report suggests. Business innovation specialist Capital Enterprise says its poll of decision-makers at UK technology businesses showed Manchester and Liverpool were among the top locations for UK entrepreneurs to start new businesses. The report has been released on the day Capital Enterprise and tech hub Turing Innovation Catalyst Manchester hold their "Innovation with Impact AI Startup Showcase" to showcase the startups on their AI Accelerator programme.
Capital Enterprise aims to drive investment across the UK and close the gap between the London-Oxbridge Golden Triangle and the rest of the country. Its members include investors, universities, corporates, business incubators and public sector bodies. Its latest research comes just days after Chancellor Rachel Reeves vowed to .
The organisation asked entrepreneurs which UK city they would choose if they started a new business. Manchester was the top regional city, with 28% of leaders believing it would be the best city in which to start a new business. While London topped the poll nationally, some 28% of leaders also believed London would be the worst city to start a business.
The most important factor for all business leaders was the availability of local talent. Every business polled said that was important to their business, and more than half said that was a key factor in deciding where to build and grow. Some 84% of those surveyed felt that transport and connectivity were either 'very important' or 'essential' to their decision-making, while 44% listed entrepreneur and business support as a factor that would influence their location choice.
Other Northern cities to score strongly as potential business locations were Liverpool, in fifth place, and Leeds in 11th. More than half of the business leaders polled (55%) said the UK government could do more to encourage startups outside London and the South East. Jonny Clark, who leads Capital Enterprise, said: “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.
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. These factors propel founders to fulfil their potential to become major employers, drive economic growth, and shape the region’s future." Liz Scott, director at Turing Innovation Catalyst, says: “This new research reflects what we see on the ground: tech entrepreneurs are gravitating to 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.” One of the startups on the Turing Innovation Catalyst programme is Spotlight Pathology, which uses AI to enable precise blood cancer diagnoses. Founder Martin Fergie said: "Manchester is an ideal base for an AI medtech startup, combining world-class clinical research, leading cancer institutes like The Christie, and a thriving tech ecosystem supported by major global companies—creating the perfect environment for innovation and growth.
" Last month BusinessLive reported on , where entrepreneurs from 10 companies pitched to investors and key players in the tech scene..
