Birmingham has recently made it onto the Top 10 list of emerging tech hubs in the UK. It’s now considered the top city for entrepreneurs to start-up a
Birmingham has recently made it onto the Top 10 list of emerging tech hubs in the UK. It’s now considered the top city for entrepreneurs to start-up a business outside of the capital.
Here, we’ll look at why the city has emerged as a start-up leader and why many entrepreneurs are leaving London to set up base there.
Where does it rank?
According to TNT’s Tech City Index, Birmingham ranks 9th as an overall tech city. This takes into account not just its start-up potential, but the number of existing tech businesses in the city, along with survival rates for start-ups.
However, when it comes to standard start-ups, a Think Tank Centre report has listed Birmingham as number two on the list.
A record number of start-ups launched in 2018
According to the report, in 2018, there were a total of 18,590 start-ups launched in Birmingham. This is a significant increase from 2017, where 13,165 businesses were launched. This alone shows just how popular the city is becoming for entrepreneurs.
Part of the reason it is becoming more popular with tech start-ups, in particular, is because the city has one of the most diverse and youngest populations in the UK. It is the younger generation who are driving innovation within the tech sector.
What other factors make the city stand out?
It isn’t just the city’s young and diverse population which is setting it apart as a tech hub. Quality of life, growth potential, cost of living and excellent transport links are just some of the reasons tech companies say makes the city perfect for investment.
In 2017, a staggering 6,016 people moved from London to Birmingham. A large reason for this has been down to an increase in jobs. Tech companies that are starting out in the city, are providing plenty of new job opportunities. The HM Revenue & Customs is the latest major company to base itself in the city, creating 3000 new jobs.
As of 2017, there were 36,802 digital jobs in the city; a figure which will no doubt have doubled by 2020. The only real challenge tech start-ups have when moving to the city, is the lack of access to finance. This was stated as one of the major challenges of starting a business in Birmingham, so those who will require capital to get them started may struggle.
It’s not hard to see why Birmingham is fast becoming the top hub for tech businesses in the UK. As more investment gets plunged into the city, it’s only likely to generate more interest, not just from start-ups, but from major, well-established tech companies too.