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Llandudno in Wales is the Start-Up Capital of the UK

Businessmen Fist Bump

Companies House data reveals start-up capitals of the UK and fastest growing sectors

New analysis of Companies House data by Yell Business has revealed that Llandudno in Wales is the start-up capital of the UK, with more businesses formed in the Welsh coastal town per capita, than anywhere else during 2021.

The report, that looked at every business formed in the UK during 2021, helps to show that despite another challenging year, the entrepreneurial spirit of the UK is alive and well, with more businesses founded per month in 2021 than in 2020, or even during pre-pandemic 2019.

With an average of 13% more new businesses founded each month in 2021 vs. 2019, the analysis pinpointed which areas of the UK were the most entrepreneurial, by calculating the number of new businesses formed in each location while factoring in population size.

The research shows that big business doesn’t just start in the city, the humble Welsh town of Llandudno took the top spot, while Surrey’s Redhill and Tunbridge Wells in Kent followed.

Cheshire also stands out as being the most entrepreneurial county in the UK, with Chester, Stockport and Warrington all featuring in the top 20.

The 20 Areas That Saw the Most New Businesses Founded in 2021

Rank    Location    Businesses Founded (Per 100 People)    
1.    Llandudno, North Wales    16.2    
2.    Redhill, Surrey    11.6    
3.    Tunbridge Wells, Kent    10.8    
4.    Truro, Cornwall    7.8    
5.    Motherwell, North Lanarkshire    7.0    
6.    Guildford, Surrey    6.4    
7.    Walsall,West Midlands    6.1    
8.    Chester, Cheshire    5.9    
9.    Canterbury, Kent    5.8    
10.    Chelmsford, Essex    5.8    
11.    Dudley, West Midlands    5.6    
12.    Dorchester, Dorset    5.2    
13.    Stockport, Cheshire    5.1    
14.    Hemel Hempstead, Hertfordshire    4.7    
15.    Doncaster, South Yorkshire    4.6    
16.    Hereford, Herefordshire    4.0    
17.    Peterborough, Cambridgeshire    3.8    
18.    Stevenage, Hertfordshire     3.7    
19.    Falkirk,Scottish Central Lowlands    3.6    
20.    Warrington, Cheshire    3.6    

Of the impressive 718,441 UK businesses that were founded up to and including November 2021, Retail was the industry that saw the biggest boom, with 119,948 start-ups registered within the sector, accounting for 16% of all new business ventures. This was closely followed by businesses offering Professional Services and Real Estate companies. 

The 10 Fastest Growing Sectors in 2021

Rank    Sector    Businesses Founded in 2021    
1.    Retail    119,948    
2.    Professional Services    116,669    
3.    Real Estate    109,570    
4.    Commercial Services    67,858    
5.    Hospitality    64,404    
6.    Construction    61,035    
7.    Wholesale    45,578    
8.    Information and Communication    37,175    
9.    Manufacturing    36,538    
10.    Health and Social Work    36,753    

Claire Miles, Chief Executive Officer of Yell commented:

“With the challenges of the last two years, we might expect to find that fewer people were deciding to take the leap into the world of startingtheir own business. However, the dataclearly shows that it has potentially inspired more people to take ownership of what they do for a living and finally make the dream of running their own business come true.

“With the background of the pandemic and numerous economic and supply chain challenges, it’s really encouraging to see that the entrepreneurial spirit of the UK is continuing to grow year on year.We look forward to working with some of these new business owners in 2022, to help make their venture a success”.

Yell’s extensive research also revealed where budding entrepreneurs could find the biggest opportunities for certain business types. This was achieved by analysing Google search demand for the likes of ‘London accountants’ versus the actual number of businesses offering the particular service in each area. Revealing that demand for businesses such as hairdressers in Oxford far outweighs the supply and therefore could present an opportunity for any stylists looking to go it alone.

Methodology: Yell Business used data from Companies House that detailed the businesses formed from the 1st January 2021 to the 30th November 2021. The number of businesses formed within each UK postcode was then calculated against each area’s population size to give a fair ranking of where most new businesses were formed in 2021. Companies House data detailing the businesses formed in 2019 and 2020 was also used.

Data from Google Keyword Planner was then used to find the search volume for specific location-based business searches and divided by the number of businesses listed on Google for offering that service to the local area. All data correct as of January 2022. 

*Source: M-Brain 2019, in terms of revenue from sales of managed digital marketing services.

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