Edinburgh is ‘third best UK city to start a business’

Edinburgh is the third most attractive city in the UK in which to establish a new business, according to a new report.

Published by asset finance brokerage firm Approved Business Finance, data from the UK’s 60 largest cities was reviewed to identify the cities offering the most potential for new businesses in 2025.

Analysts found that Edinburgh holds three key factors in attracting new companies to make their home in the Scottish capital — including competitive commercial property costs, wide-spread, high-speed internet coverage and a potential pool of highly educated workers. 

“Edinburgh is the third-best city for new businesses, with an average square foot cost of just £48,” said the report.

“Per capita, Edinburgh also has the highest number of higher-educated residents in the UK, with 73% of people taking on A-levels or higher.”

The University of Edinburgh welcomed the report, saying: “This positive news echoes Edinburgh’s reputation as a centre of finance, business, and innovation, and one which continues to welcome aspiring entrepreneurs across a range of industries and ideas. 

“It also reflects the University’s long-held approach, having helped staff and students launch more than 500 companies in the last 50 years.  

“These companies, and others supported by University-led programmes like the Venture Builder Incubator and AI Accelerator, contribute to the city’s vibrancy, attract investment and create economic growth. 

“An independent financial report in 2023 found that the University’s entrepreneurs created £162 million for the UK economy and 1830 jobs. Last year, University-associated companies attracted £141 million of investment …

“Edinburgh Innovations (EI), the University’s commercialisation service, works across the University to support venture creation, providing bespoke training and business advice for entrepreneurial staff and students and protecting the intellectual property that is at the heart of high-value spinouts (staff companies).

“The University’s in-house venture investment fund, Old College Capital, part of Edinburgh Innovations, provides seed funding to early-stage companies with exciting ideas and continues to invest as they grow.”

Dr Andrea Taylor, CEO of Edinburgh Innovations, said: “The University of Edinburgh has world-leading research in data science and AI, a track record in major therapeutics and life sciences spinouts, and emerging technologies in areas like cell and gene therapy, engineering biology and AI hardware.

“But as well as research-created solutions, our companies attract investment and bring jobs and renewed energy to our city and region. The recently opened Edinburgh Futures Institute, for example, provides innovation connection spaces and helps create fully integrated entrepreneurial communities in the heart of Edinburgh.

“We are proud to play our part in Edinburgh’s thriving entrepreneurial ecosystem, supporting founders to make their ideas work for a better world.”