Manchester tops the UK’s list of young entrepreneur hubs. New analysis of over 60,000 Companies House records reveals the city has the highest concentration of founders aged 24 and under, reflecting a new wave of youth-led enterprise beyond the capital.
The UK’s youngest founders are rewriting the rules of entrepreneurship — and Manchester is leading the charge. A new study by business finance platform Capital on Tap has found that the city is home to the country’s highest density of under-25 business founders, with 294 active entrepreneurs — equivalent to 74 per 100,000 residents.
The analysis reviewed more than 60,000 Companies House records to identify active directors aged 18 to 24 and compared population-adjusted results across UK cities. Wakefield ranked second with 41 young founders per 100,000 people, while Canterbury placed third with 36. Truro, Brighton, Chester, Durham, Birmingham, Newcastle upon Tyne, and Belfast completed the top ten.
While London had the largest total number of young founders — around 1,200 — its scale meant it ranked only 17th in terms of density. Smaller cities and coastal areas such as Truro are, according to the report, “punching above their weight,” pointing to a wider shift in where entrepreneurial opportunity takes root.
Among the under-25 founders identified, digital retail proved the dominant sector, with 416 businesses trading via mail order or online channels. Hairdressing and other beauty treatments followed, with 109 young-led ventures, ahead of takeaway food shops and mobile food stands (102). Other active industries included advertising, freight transport, and software development — sectors that combine creativity, accessibility, and low start-up barriers.
The report also found that 82 per cent of 18- to 24-year-olds in the UK are considering starting their own business, suggesting a sustained appetite for independence and innovation among younger generations.
Hugh Acland, Chief Commercial Officer at Capital on Tap, said that while young entrepreneurs bring fresh energy and ideas to the business world, finding the confidence to start can take time. He added that understanding how to manage cash flow, access local funding, and make smart investments early on helps build businesses that last and grow alongside their founders.
The research also spotlighted 23-year-old founder Monet Davis, who launched her catering company, FaceFlavour, while studying at the University of Nottingham. “If sandwiches and wraps are welcome in boardrooms, then jerk chicken and rice & peas should be too,” she said. “You won’t learn how to run a business by standing on the sidelines; you learn by doing. Take that chance on yourself, believe in your vision, and use the resources available to you.”
Capital on Tap’s study — conducted in September 2025 using Companies House and ONS population data — applied filters to exclude inactive and offshore companies, ensuring only verified UK businesses were counted. The findings suggest that while entrepreneurship is becoming more geographically dispersed, access to local funding, mentorship, and university support programmes remains a key factor in early-stage success.
The full UK Young Entrepreneur Report can be read here.
