New survey names Doncaster as worst place in UK to run a successful business

The figures rank the city 58th and last in list of UK towns and cities where firms are given the best chance of survival.

Starting and sustaining a business in Britain has never been straightforward.

From rising costs and shifting consumer habits to recruitment pressures and tax changes, entrepreneurs face a challenging landscape.

Yet some parts of the UK consistently offer stronger foundations for growth, combining healthy start-up activity with solid survival rates and high productivity.

So where are businesses most likely to flourish this year?

To find out, LEI Register analysed 58 major UK areas using the latest data from the Office for National Statistics.

The research compared five key measures of economic strength: business births, business deaths, five-year business survival rates, gross value added per hour worked, and GDP.

​Cambridge took the top spot, driven by a strong combination of resilience and economic power.

While its number of business births is modest compared to larger cities, it performs impressively where it matters most. It ranks sixth for five-year survival rates at 48 per cent and eighth for low business deaths. Its productivity is also among the strongest in the country, with GVA per hour worked indexed at 108.7, and it places fourth for GDP at £62,800. Together, these indicators point to an economy that supports firms beyond the start-up phase.

​Wokingham ranks second, with Winchester third and Edinburgh fourth. Oxford completed the top five.

At the other end of the table, Doncaster ranks last overall, weighed down by one of the lowest productivity scores in the UK and a five-year survival rate of just 29.7 per cent.

Swansea and Liverpool also struggle with low survival rates, both below 28 per cent, despite relatively healthy start-up numbers. Birmingham, while second for business births, records very high business deaths and a survival rate under 30 per cent, indicating difficulties in sustaining firms long term. Salford, despite reasonable productivity, sees survival rates of just 28.2 per cent, holding back its overall performance.

Toomas Pavelson, spokesperson for LEI Register, commented on the study: “Running a business in the UK today requires more than a good idea.

"Entrepreneurs are dealing with higher borrowing costs, tighter margins, skills shortages and cautious consumers. Many start-ups launch with energy and ambition, but the real challenge is surviving beyond those first three to five years.”

“One of the biggest pressures we see is cash flow. Businesses can win contracts and generate sales, but if payments are delayed or costs rise unexpectedly, it quickly becomes difficult to stay afloat.

"That is why survival rates are such an important signal. They show where companies are not just opening, but actually managing to build something sustainable.”

“Productivity also plays a major role. When an area has high gross value added per hour worked, it usually reflects a skilled workforce, strong infrastructure and efficient operations. That creates a healthier commercial ecosystem. Businesses can charge more for specialised services, access better talent and benefit from knowledge-sharing between sectors.”

“Economic output matters as well. Areas with higher GDP tend to have stronger supply chains, greater investment and more diverse industries. That diversity helps cushion businesses during downturns. If one sector slows, others can continue to drive growth. Ultimately, places that combine strong survival rates, good productivity and stable economic output give firms the best chance of long-term success.”