Exeter ranked among UK’s best cities to start a business

Exeter has been named the third-best city in the UK to start a business, according to new research by specialist small business insurer Markel Direct.
The study assessed 46 of the country’s largest cities across factors such as business closure rates, five-year startup survival rates, broadband speeds and household income growth. Each city was scored out of 10 in each category, producing an overall ranking of the best locations to launch a new business.
Exeter performed strongly, achieving the highest five-year survival rate of any city, with 51.7% of startups reaching the milestone. It also received a solid business closure score of 8.8 out of 10, although broadband speeds were weaker, scoring 5.8.
Belfast topped the index with an overall score of 34 out of 40. The city scored a perfect 10/10 for its low business closure rate, with just 8.22 closures per 100 active firms, and also boasted 95.6% gigabit broadband coverage alongside a five-year survival rate of 44.6%.
Cambridge came second, just behind Belfast with 33.8 points. It achieved 9.6 for business closure rate and 9.4 for survival, with 45% of startups lasting five years.
Exeter took third place overall, thanks to its record survival rate, despite broadband holding its score back.
Rob Rees, Divisional Director at Markel Direct, said:
“Small businesses are the backbone of the UK, and many of the cities in our study are ideal locations for startups to thrive. Whilst running a successful business is influenced by factors beyond solely location, having access to superfast internet, a local talent pool and business support networks can provide your venture with the best start in the pivotal early days.”
The report also explored the motivations of the next generation of entrepreneurs, comparing Gen Z business owners with more established founders. While both groups shared common goals such as being their own boss, financial independence and flexibility, younger entrepreneurs were more likely to pursue alternative financing methods like crowdfunding or business competitions, while older owners relied on personal savings.
Social media creators were also identified as the leading influence on Gen Z entrepreneurs, surpassing traditional sources such as family, friends and government initiatives.
The full study is available on the Markel Direct website https://www.markeluk.com/business-leaders-of-tomorrow