Milton Keynes named in top 5 best cities in the UK for entrepreneurs in 2025, according to new study

The research team at Businessmagnet Ltd analysed 100 cities and towns across the UK to identify where entrepreneurial success is most likely in 2025. Drawing on publicly available data from the Office for National Statistics (ONS) and the Scottish Government, they examined six essential indicators to paint a picture of each location’s business environment.

Each factor was equally weighted to ensure fairness: business birth rate (25%), number of active businesses per 10,000 residents (20%), business death rate (10%), percentage of high-growth firms (20%), employment rate (15%) and self-employment rate (10%). These were then standardised and compiled into a final score, with 100 being the maximum.

5. Milton Keynes – Score: 59.43

Milton Keynes shares fifth place with Rugby and brings a very different energy. Known for its modern planning and growing tech scene, it posted a high startup rate of 12.3% and a strong high-growth percentage of 6.3%. That’s the fifth-best in the study, suggesting the city isn’t just launching businesses – it’s scaling them too.

While its employment rate is lower (76%), Milton Keynes’ performance across the other categories makes it a smart pick for entrepreneurs who value scalability and a tech-forward infrastructure. With over 510 businesses per 10,000 residents, there’s also a decent level of peer support in the local community.

Dartford came out on top, combining high business density with the country’s highest employment rate. Reading followed closely with a strong showing in high-growth businesses. London ranked third, leading the pack in business density and self-employment. Watford secured 4th thanks to its strong employment and low business closures, while Rugby matched Milton Keynes in 5th but with standout business density figures.

Cheltenham landed in 7th, offering a healthy high-growth rate and low business death rate. Slough, in 8th, boasted the highest startup rate among the top 10. St Albans ranked 9th with the strongest self-employment showing, and Manchester rounded off the top 10 list with a top-tier 14% startup rate.

And the worst places?

Not every city is ripe for a startup dream. According to the same study, the bottom 10 for entrepreneurs included Belfast, Rotherham, Durham, Dundee, Gosport, Chesterfield, Wolverhampton, Hartlepool, Lancaster, and Mansfield. These areas typically struggled with low business creation rates, fewer high-growth firms, and weaker employment indicators.

Where did other major cities rank?

A few other big names appeared further down the list. Oxford ranked a respectable 18th, with Edinburgh close behind in 31st. Bristol came in 32nd, followed by Leeds (35th), Liverpool (45th), and Cambridge (50th). Birmingham landed in 55th, with Nottingham at 63rd, Leicester 70th, and Sheffield near the bottom in 87th place.

Top 10 list of the best UK cities for an entrepreneur: