New analysis from MoneySuperMarket suggests the UK’s start-up economy remains centred on London, but a wider group of cities and towns is generating new businesses at a notable rate once population is taken into account.
Using Companies House registrations from 2025 and comparing them with local population data, the research ranked places by the number of new businesses created per 1,000 residents. London led the list with 284,814 new companies and 29.9 new businesses per 1,000 people. Outside the capital, Manchester ranked first on a per-capita basis with 23,541 new companies and 18.5 businesses per 1,000 people, followed by Watford at 15.3, Slough at 15.2, and Luton at 14.7.
The London numbers also varied sharply by area. MoneySuperMarket said West Central London recorded 1,314 new businesses per 1,000 people in 2025, while East Central London registered 42,486 new businesses in total and 1,140.1 per 1,000 residents. West London placed third among London locations on the same measure, with 54.8 new businesses per 1,000 people. The gap illustrates how concentrated new company formation can be even inside the country’s largest entrepreneurial hub.
Sector data showed professional services leading the field in 2025, accounting for 180,169 newly registered businesses, or 15% of all formations. Retail followed at 164,353, representing 14%, while real estate made up 13%. Hospitality and commercial services each accounted for 7%, indicating that service-led sectors continue to dominate the flow of new company creation.
The findings give a clearer picture than headline registration volumes alone. Larger cities will almost always produce more companies in absolute terms, but a per-capita view highlights where entrepreneurial density is strongest. For founders, investors, and local support networks, that distinction matters because it says as much about ecosystem intensity as it does about scale.
The full research is available via MoneySuperMarket’s start-up capitals page.
