Salford has been named the UK’s most entrepreneurial city after its concentration of small businesses increased by 15.4% in a year, according to new research from GoDaddy.
The ranking places Salford ahead of several larger cities, with satellite locations dominating the list. Four of the top five places were smaller cities located close to major urban centres.
GoDaddy’s Most Entrepreneurial Cities ranking uses data from its Small Business Research Lab to measure growth in microbusiness density. The score is based on the number of new start-ups for every 100 residents and is intended to identify areas where small businesses are expanding most rapidly.
Salford, which has a population of around 130,000, is located about two miles from Manchester. The city recorded a 15.4% increase in microbusiness density during the 12-month period.
Ely, located around 14 miles north of Cambridge, ranked second after recording growth of 14.9%. Its rate was more than twice that of Cambridge, where microbusiness density rose by 7.1%.
Bangor in Northern Ireland ranked third with growth of 12.9%, compared with 3.2% in nearby Belfast. Milton Keynes recorded an 11.7% increase, putting it ahead of London, where growth stood at 9.8%.
The remaining cities in the top 10 were Stirling, Londonderry, Manchester, Sunderland, Preston and Lisburn.
GoDaddy linked Salford’s performance to years of investment in its business infrastructure. The city has developed a digital and innovation-focused enterprise hub around HOST Salford at MediaCity, supported by Salford City Council and public funding.
The hub has received £846,900 from the UK Shared Prosperity Fund and has supported more than 300 businesses while helping more than 5,000 people develop new skills, according to GoDaddy.
Yvonne Sampson, director of enterprise at GM Business Growth Hub, said Salford’s growth had developed over more than a decade, supported by investment and partnerships involving the city council, university and business organisations.
Local businesses also point to lower operating costs as an advantage. Zwi Meisner, who runs the New York Laundrette with his brother, said Salford offered a strong community and lower premises costs than Manchester.
Technology is also changing the prospects for new businesses. GoDaddy found that 52% of entrepreneurs use generative AI, with content creation, marketing and business advice among the most common applications.
The cost of starting a business has also fallen. More than half of entrepreneurs surveyed said they had launched a new venture with less than £1,000 in initial funding.
Alexandra Rosen, economist and head of the GoDaddy Small Business Research Lab, said digital infrastructure, AI tools and lower start-up costs were allowing entrepreneurs to establish businesses outside traditional major commercial centres.
She said smaller cities and towns were becoming increasingly important contributors to the UK’s entrepreneurial economy.
