Cardiff has ranked amongst the top cities in the UK for start-ups in analysis from a workspace provider.
BizSpace ranked 15 major UK cities based on key factors such as office prices, unemployment rates and broadband speeds. Each city received a Start-up Score, reflecting its desirability for budding entrepreneurs.
Cardiff earned a score of 9.6, behind Nottingham with 9.7 and Sheffield with 10.
The firm said that Cardiff had a diverse economy, with particular strength in technology, creative industries and finance. With average office costs of just £25 per square foot, Cardiff offers some of the lowest overheads of any major UK city – an attractive proposition for early-stage ventures and SMEs looking to keep fixed costs down, it said.
The average number of jobs accessible via public transport within 30 minutes stands at 36,174, on the lower end of the rankings. While this suggests a more compact economic footprint compared to cities like London or Manchester, it also reflects Cardiff’s convenient urban layout, where many key business districts are easily reachable.
At 5%, Cardiff’s unemployment rate is in line with the national average. This suggests a stable local workforce with opportunity for growth, but also highlights the importance of continued investment in skills and training to keep up with demand from the city’s expanding tech and creative sectors.
With an average broadband speed of 50Mb, Cardiff’s connectivity is modest by UK standards but sufficient for most small businesses, particularly those in service and digital industries. There's clear room for improvement here, especially if the city aims to attract more data-driven and remote-first start-ups, said BizSpace.
Cardiff has a balanced business birth and death rate (12 per thousand), indicating a healthy but cautious entrepreneurial ecosystem. This stability suggests that while the city may not have the explosive growth of London or Manchester, it supports sustainable, long-term business development.
Projected Gross Value Added (GVA) for the region sits at 1.5, aligning with many other high-performing UK cities. This suggests Cardiff's economy is growing steadily, with strong contributions from finance, media, and public sector roles.
Cardiff is shaping up to be a cost-effective and stable base for new and growing businesses, the firm said. Its low-cost office space, balanced economic indicators, and accessible urban design make it ideal for entrepreneurs seeking a supportive environment without the pressures of the capital or larger metro areas. With targeted improvements in broadband infrastructure and continued support for business development, Cardiff could climb even higher as one of the UK’s most start-up-friendly cities, it added.
Aman Parmar, BizSpace Head of Marketing, said:
“The findings highlight a competitive landscape where various locations are adapting to meet the diverse needs of businesses, but also vice versa. As demand for flexible workspaces continues to rise, cities must leverage their unique strengths to cultivate innovation and economic development, ensuring that they remain attractive to budding entrepreneurs.
“Entrepreneurs must not only take advantage of the resources and opportunities their environments provide, but also embrace the unique identity of their city. Integrating local culture and community connections into business strategies can help entrepreneurs create a more authentic brand that resonates with potential customers.
“This holistic approach not only enhances the potential for individual business success, but also contributes to the vibrancy and economic growth of their local ecosystems, positioning cities as thriving hubs for innovation and entrepreneurship.”
