Starting a new business is always a challenge, regardless of how good a business idea might be. The challenge remains present for would-be entrepreneurs even though we now seem to have left behind the worst of the economic recession. Choosing the right business location can make all the difference between success and failure, so take a look at the list below to find out which are the UK’s top-ten cities for business start-ups.

London

It is hardly surprising to find London at the top of this list. According to a report published by Startup Britain, during 2013 more than 136,000 new businesses were set up in Greater London. In particular, the Tech City is acting as a hub for local and foreign entrepreneurs alike, as in 2012 over 15,000 businesses were registered in the area. If you are into software development, gaming, or online boutiques, this thriving London area can be the ideal location for your business. Croydon is another appealing location, especially when you consider the business rate discounts schemes available.

Birmingham

Birmingham has the UK’s second highest number of start-ups , with over 16,000 companies registered in 2013. The city’s entrepreneurial culture has attracted a large number of new business, mainly in the creative and sectors. Entrepreneurs can benefit from modern infrastructure, affordable prime office space, and excellent transport links. Moreover, the local council has launched a business development programme that offers financial assistance and mentoring to local SMEs.

Manchester

If you are in the retail, science, bio-tech, or creative industries, consider Manchester’s growing appeal as a business hub. The city’s business district has experienced extensive regeneration and now offers a vast array of workspaces to suit all business needs. The number of science and business parks has mushroomed over the past few years, and the city is considered a world-class centre for networking and business events.

Edinburgh

With more than 7,000 start-ups during 2013, Edinburgh is one of the country’s most well-established locations for new business owners. The city’s intellectual capital and forward-looking character have been combined with world-class business facilities to turn Edinburgh into a competitive business hub at national and European level. Inititatives like TechCube have been incredibly successful too, and have become home to some of the region’s fastest-growing start-up businesses.

Glasgow

According to research carried out by the Centre for Cities, in January 2014 Glasgow made it to the top-five in the list of best cities for business start-ups. Recently, Scotland’s Office Minister highlighted the importance that governmental schemes have had in strengthening of Glasgow’s business culture. Incentives like the New Enterprise Allowance or the Enterprise Finance Guarantee have been highly successful in this Scottish city, as local entrepreneurs have received more than £100 million in business loans.

Bristol

Bristol is a leading business hub for start-ups in the tech, aerospace, and micro-electronics industries. Recently, the city has seen an explosion in the number of business incubators and innovative workspaces, like Engine Shed or the SetSquared Centre, an award-winning project that enjoys an excellent international reputation.

Northampton

In 2013, Northampton’s business environment climbed the ranks of the UK’s best start-up cities list, gaining recognition for its outstanding number of successful start-ups, business financial health ratings, and low turnover levels. Funding, training, and support schemes are available through organisations like the Northamptonshire Growth Club, First Enterprise, the East Midlands Development Agency, and Northampton Borough Council.

Warrington

This Cheshire city is positioned ahead of Sheffield and immediately behind Edinburgh in terms of its start-up potential. This is mainly due to the city’s excellent location and accessibility. Low business costs, a growing number of networking events, and government investment for the value of £450 million are other factors that attract entrepreneurs to Warrington.

Brighton

Brighton’s creative and digital sector has been booming since the 1990s, and the number of local start-up businesses shows no signs of slowing down. You may also want to consider this location if you are in industries like accountancy, business services, media, marketing, e-commerce, e-learning, business training, and telecommunications. There are several grant schemes available, as well as free business start-up courses.

Reading

In early 2014, Reading experienced start-up growth levels of 6 per cent. This is a significant figure and goes to show that entrepreneurial spirit is alive and kicking in this Berkshire town. Reading’s best selling points as a business location include its excellent transport links with the rest of the UK and a highly skilled pool of talent.