The North of England is emerging as a powerhouse of entrepreneurial activity, with a surge in the number of new start-ups and small businesses being launched, according to new research from GoDaddy UK and Ireland.
The analysis reveals that 40% of the areas showing the fastest growth in start-up density are located in the North — a region long considered economically behind its southern counterpart. This latest data suggests a significant shift in the UK’s entrepreneurial map, with the North increasingly taking centre stage.
According to GoDaddy’s Venture Forward report, out of the 50 parliamentary constituencies with the fastest growing density of small businesses, 20 are based in so-called “Northern Powerhouse” areas. This compares with just nine in the South of England and marks a doubling in the North’s representation compared to the previous year’s data.
Towns such as Barrow-in-Furness in Cumbria, Burnley in Lancashire, and Birkenhead in Merseyside are leading the charge, recording growth in start-up activity of more than 70% year-on-year. These figures not only highlight a regional renaissance but also reflect the impact of targeted investment and support for business creation in traditionally under-served communities.
Andrew Gradon, head of GoDaddy UK and Ireland, said: “While small businesses flourish across the nation, the North has proven to be a hub of entrepreneurial spirit. A decade on from the introduction of the Northern Powerhouse Investment Fund, the investment is clearly having an impact on the start-up economy.”
Launched by the coalition government in 2010, the Northern Powerhouse initiative was designed to rebalance the UK economy by investing in northern infrastructure, education, and enterprise. Local Enterprise Partnerships (LEPs) were set up to help drive growth at a regional level, providing tailored support for local business communities.
Mr Gradon added: “Importantly, it proves that being a small business doesn’t mean having small ambitions, nor does it mean small impact. Small businesses will have a key role to play in unlocking the North’s longer-term potential, benefiting the region hugely by providing new jobs and opportunities. However, the same can be said for all areas, because when local entrepreneurship thrives, we all thrive.”
Analysts have noted that the COVID-19 pandemic and the subsequent shift towards digital commerce have played a role in democratising access to entrepreneurship. As more consumers and businesses moved online, barriers to market entry were lowered, allowing individuals from more remote or less economically active areas to launch and scale businesses with relative ease.
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Many of these new ventures are being run by sole traders or microbusinesses operating in sectors such as online retail, home services, digital consultancy, and niche crafts. The accessibility of digital tools and e-commerce platforms — including those provided by firms like GoDaddy — has further enabled this growth.
The positive trend in the North is being seen as a promising sign by both business leaders and policymakers, particularly at a time when regional inequality remains a persistent challenge in the UK economy.
Local councils and development agencies have also played a part, offering start-up grants, shared workspaces, and mentoring schemes aimed at encouraging entrepreneurship at a grassroots level.
However, some experts warn that sustaining this momentum will require ongoing support. Access to funding, skills development, and digital infrastructure remain key concerns in many of the fastest-growing northern constituencies.
Nevertheless, the latest data from GoDaddy suggests that with the right support and a continued focus on local enterprise, the North of England could soon rival the South as the beating heart of British business innovation.
As Mr Gradon concluded: “This is a reminder that the next big thing in British business might not come from London or the Home Counties — but from Burnley, Birkenhead or Barrow.”
