Torfaen has been named the best area to start a business in the UK, according to new data. The study, conducted by IT service software company InvGate, analysed figures from the Office for National Statistics to determine the regions with the highest growth in new business establishments between 2022 and 2023.
The Welsh borough of Torfaen topped the list, with an impressive 11.74% increase in new businesses over the period. The number of registered companies in the area rose from 2,215 in 2022 to 2,475 in 2023, marking the establishment of 260 new firms. Of these, 215 were in the wholesale sector, reflecting a notable surge in this industry.
Blackpool and North Warwickshire follow closely
Blackpool ranked second on the list, with a 7.24% rise in new businesses. The seaside town saw the number of registered companies increase from 3,870 in 2022 to 4,150 in 2023, with a total of 280 new businesses. Blackpool’s growth was particularly driven by the transport and storage industry, which saw 125 new companies registered, while the business administration and support services sector gained 110 new firms.
North Warwickshire came in third, posting a 5.03% increase in new business establishments. The area grew from 2,785 registered firms in 2022 to 2,925 in 2023, an addition of 140 businesses. The transport and storage sector once again played a key role, with 55 new companies registered, while the accommodation and food services sector added 35.
Oldham and North Kesteven among top five
Oldham in Greater Manchester placed fourth, experiencing a 3.98% increase in businesses between 2022 and 2023. The borough saw 285 new companies, with significant contributions from the transport and storage (65) and construction (55) industries.
In fifth place was North Kesteven, a largely rural district in Lincolnshire, which saw a 2.64% rise in business registrations. The number of firms grew from 4,160 in 2022 to 4,270 in 2023, with business administration and support services accounting for 45 of the new businesses.
The full top ten
The remainder of the top ten included Ashfield in sixth place, Doncaster in seventh, Amber Valley in eighth, Hackney in ninth, and Ipswich in tenth. While Hackney recorded the largest numerical increase, adding 530 new businesses between 2022 and 2023, this only represented a 2.17% rise, leaving it behind other areas in terms of percentage growth.
At the bottom of the list was Wyre Forest, which recorded a significant decline in business numbers, with a 12.25% decrease. The number of businesses in the area dropped from 4,735 in 2022 to 4,155 in 2023, a loss of 580 firms.
Business establishment increase by UK local authority – Top 10 ranking
| Rank | Local authority | Number of businesses (2022) | Number of businesses (2023) | Business increase (2022-2023) | Percentage increase |
| 1. | Torfaen | 2,215 | 2,475 | 260 | 11.74% |
| 2. | Blackpool | 3,870 | 4,150 | 280 | 7.24% |
| 3. | North Warwickshire | 2,785 | 2,925 | 140 | 5.03% |
| 4. | Oldham | 7,155 | 7,440 | 285 | 3.98% |
| 5. | North Kesteven | 4,160 | 4,270 | 110 | 2.64% |
| 6. | Ashfield | 3,100 | 3,170 | 70 | 2.26% |
| 7. | Doncaster | 9,870 | 10,090 | 220 | 2.23% |
| 8. | Amber Valley | 4,570 | 4,670 | 100 | 2.19% |
| 9. | Hackney | 24,405 | 24,935 | 530 | 2.17% |
| 10. | Ipswich | 4,610 | 4,705 | 95 | 2.06% |
Smaller towns offer opportunities
Ariel Gesto, CEO of InvGate, commented on the findings:
“Choosing the right location is crucial for any startup. The data suggests that smaller towns may offer more opportunities for growth in less saturated markets. Starting in these areas and expanding to larger cities such as London or Manchester could be a more strategic path for entrepreneurs.”
The study highlights the potential benefits of launching businesses in regions outside of major cities, suggesting that smaller areas may provide a less competitive environment for new ventures.