Portsmouth named one of Britain’s top 10 cities for investment-ready businesses

Launching a successful business takes more than a bright idea. Access to skilled workers, productive local economies, thriving start-up ecosystems and businesses that survive beyond their early years all play a crucial role.

placeholder image — Portsmouth named one of Britain’s top 10 cities for investment-ready businesses | Source: Unsplash

A new LEI Register study has ranked Britain's most investment-ready cities by examining the factors that matter most to entrepreneurs and investors alike. The study analysed 58 UK cities using seven key indicators of business readiness: employment rates, economic productivity measured by gross value added (GVA) per hour worked, business birth rates, the proportion of high-growth businesses, three-year business survival rates, average office rental costs and education levels.

Portsmouth ranks tenth as one of Britain’s most investment-ready cities. It benefits most from relatively affordable business premises and steady levels of new business formation. Average office rental costs stand at £1,800, ranking 18th in the study, making it one of the more cost-effective locations among the top 10.

The city records a business birth rate of 12.92 per cent, ranking 18th, suggesting a healthy flow of new firms setting up in the area. The high-growth business rate is 4.08 per cent, ranking 32nd, indicating a more modest level of scaling activity compared with higher-ranked cities.

The employment rate stands at 80.4 per cent, ranking 10th, showing a relatively strong labour market. Productivity is lower in comparison with many top-ranking cities, with gross value added per hour worked at £41.59, ranking 24th in the study. The three-year business survival rate is 54.35 per cent, ranking 29th, placing it in the mid-range for business longevity.

Education levels stand at 69.5 per cent qualified to Level 3 or above, ranking 29th, suggesting a moderate but stable skills base supporting the local economy.

Looking at the rest of the top 10, Wokingham ranks first, followed by Edinburgh in second and London in third. Oxford comes fourth, St Albans fifth, Manchester sixth, Cambridge seventh, Milton Keynes eighth, and Winchester ninth.

Top 10 investment-ready cities in Britain: