7 September 2016 14:00
Cheapest place in the UK to start a business revealed
Research carried out by enterprise finance provider LDF has found that the best place to start a business in the UK if you want to minimise your start-up costs is.....
...Newcastle. In the North East city it costs an average of £17,008 to start your own business.
The claim was based on a survey of 850 SMEs throughout the country, which found that the average amount needed to start a business in the UK is now £27,520.
Close behind Newcastle was Southampton (£17,965), followed by Liverpool (£18,880), Cardiff (£19,569), Leeds (£20,755), Sheffield (£21,490) and Edinburgh (£22,990).
The place with the highest average start-up costs, according to LDF, is Manchester (£44,733), followed by Glasgow (£41,936), Norwich (£39,910), Brighton (£30,901), Bristol (£30,895), Birmingham (£30,817) and Plymouth (£29,784).
Perhaps surprisingly, London came in eighth position. In the capital, according to LDF, the average start-up cost is £28,742, but this is still more than £10,000 more than entrepreneurs up in Newcastle pay to launch their businesses.
The research also highlighted sectors in which more start-up funds were needed, and found that money required to start a business in leisure (£79,137) and motoring (£64,948) was far higher than other sectors, including marketing, communications and design, where start-up costs on average were less than £7,000.
According to LDF, regardless of location, almost a third of UK SMEs who responded agreed that funding was the biggest challenge they faced. To get their business off the ground, 42% of respondents had used their own savings, while 24% had sought financial help from friends and family.
Once they had set up their business, the average amount borrowed in a 12-month period by respondents was £75,408, according to LDF. The main reasons cited were to buy equipment (40%) and to fund expansion (38%).