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September 15.2025
2 Minutes Read

Why Leicester Leads the UK in Fastest New Business Growth: Insights for Investors

Aerial view of city with church spire highlighting fastest new business growth UK.

Leicester: The Fastest Growing City for New Businesses in the UK

Leicester has emerged as the ultimate hotspot for budding entrepreneurs, topping the UK rankings for fastest new business growth. According to recent data from Liquidation Centre, businesses in this East Midlands city have achieved an astonishing average growth rate of 95.3% over the past five years. With more than 4,000 new enterprises registered between 2018 and 2023, Leicester is undoubtedly a dynamic hub for start-ups.

Comparative Success in Surrounding Regions

While Leicester shines, Central Bedfordshire also displayed remarkable growth, recording an average rate of just over 68% with over 2,000 new registrations. Hertfordshire is making strides too; although it ranks third in terms of volume with more than 9,000 start-ups, it maintains a healthy average growth rate of over 30%. Notably, South Wales presents a more varied landscape, exhibiting promising growth in Rhondda Cynon Taf at 28% but struggling in Caerphilly, which faced a significant year-on-year decline.

The Need for Support in Underperforming Regions

These statistics illuminate a stark divide in the UK's entrepreneurial ecosystem. As areas like Leicester and Central Bedfordshire flourish, regions such as Caerphilly and Darlington are not faring as well. Caerphilly recorded a troubling average year-on-year decline of 18%, leading to calls for more targeted government intervention to help bolster struggling economies. The evidence highlights a pressing need for policies that cater to the unique challenges faced by local entrepreneurs.

Final Thoughts on Entrepreneurial Dynamics

The findings emphasize the importance of fostering an environment conducive to business growth. For financial institutions and service providers, understanding these dynamics is crucial for guiding investment decisions and strategies. By supporting vibrant local ecosystems, stakeholders can play a critical role in rectifying disparities across the UK’s entrepreneurial landscape.

Entrepreneurship & Startups

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