Business

LDF survey names Belfast most 'cost-effective' city for business start-ups

Belfast has been named as one of the most cost-effective cities in which to start a business
Belfast has been named as one of the most cost-effective cities in which to start a business Belfast has been named as one of the most cost-effective cities in which to start a business

LOW rental costs and property prices are the main drivers directing businesses to Belfast, a new report has found.

The data, compiled by LDF, one of the UK’s largest independent finance providers to SMEs, unveiled Belfast as one of the most cost-effective places in the UK to start a business.

According to the survey of 850 SME owners/decision makers, nearly half of Belfast’s SME community chose to operate in the city due to the low cost of renting or owning property (46 per cent). Respondents said they needed just £23,164 to become established - less than the UK average of £27,520. However, despite this, over a third of the 50 Belfast small-to-medium sized businesses which took part in the survey, claimed funding was the biggest issue when setting up.

The research also turned the spotlight on other UK regions leading the way: Liverpool was named the education leader with 12 per cent of start-ups in this field, while Southampton came out top for IT (18 per cent).

Edinburgh and Newcastle took the lead in finance (10 per cent) and Cardiff topped the poll for manufacturing, with 18 per cent of its SMEs focused in this sector.

Meanwhile, arts and culture was deemed to be flourishing in Bristol (10 per cent) and professional services was most prominent in Southampton (18 per cent).

Peter Alderson, Managing Director at LDF, said the results proved the SME sector was “clearly thriving” but the survey had also shed light on the “harsh financial realities” faced by both start-ups and established businesses.

“With over half of SMEs in Belfast stating that they do not find banks to be ‘business-friendly’, many experts cite that small to medium-sized business owners are instead turning to alternative finance options, as it helps people spread the cost of business investment and expenditure,” he said.