Cardiff Takes Pole Position as the Best City in the UK to Start a Business in 2025

Cardiff Takes Pole Position as the Best City in the UK to Start a Business in 2025

Cardiff has officially taken pole position as the UK’s top city for business growth, outpacing traditional economic giants like London and Manchester, according to new research from private and commercial bank Arbuthnot Latham.

The Business Growth Index 2025 analysed business density by comparing new company registrations with local population figures. The results? Cardiff leads the way, with one new business registered for every 10 residents—the highest business density in the UK.

Key findings from the report:

• Cardiff ranks No.1 in the UK for business density, scoring an impressive 99.
• 35,943 new businesses were registered in the Welsh capital over the past two years.
• Cardiff’s affordability, high graduate retention, and thriving business ecosystem contribute to its success.

Why Cardiff?

• Lower property costs make it an attractive hub for entrepreneurs and investors.
• Cardiff University’s strong graduate retention fuels a high-quality workforce.
• The city is actively promoted as a business destination, with strong government support and access to key decision-makers.

Industry experts weigh in:

Chris Stevens, Senior Commercial Banking Expert at Arbuthnot Latham, highlighted Cardiff’s appeal for property investment, noting “lower entry costs compared to Bristol and Bath”, making it ideal for businesses and landlords.

Angela Niering-Wren pointed to Cardiff’s “strong research and development track record” and the new Cardiff Innovation Campus, which is driving collaboration between academia and industry.

💡 With entrepreneurship booming across the UK—nearly a million new businesses registered nationwide—Cardiff is setting the standard for innovation and economic growth.