Liverpool is a pandemic start-up hotspot, reveals new data

New study of data from Companies House puts Liverpool in the UK top 10 for new business start-ups during the COVID-19 pandemic. Tony McDonough reports

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Liverpool entrepreneurs have been starting businesses in their thousands during the pandemic


Liverpool has been one of the UK’s entrepreneurial hotspots during the COVID-19 pandemic, newly-compiled data shows.

A new study analysed data from Companies House to identify the UK locations with the highest level of business start-ups between March 24 and December 2020. In the top 10, Liverpool came in at number seven with 4,702 start-ups – an almost 38% increase on 2019.

The city was the second-highest in the North West, beaten only by Manchester which saw 7,818 start-up ventures in the same period. It came third in the list and was beaten only by London and Birmingham.

Earlier in January, LBN revealed that Liverpool was the top local authority area in the North West for the number of people who had started their own businesses via the Government’s New Enterprise Allowance scheme over the past decade.

Launched by the Government in 2011, the NEA was designed to help unemployed people who were interested in starting their own business. The scheme offers access to a business mentor. Out of 3,560 people who accessed the NEA scheme, 2,140 started their own ventures.

The latest study, carried out by specialist business credit card provider, Capital on Tap, found more than 528,746 businesses have registered since the 23rd March 2020 (the beginning of lockdown) – an increase of 26% when compared to the same period the previous year.

According to the report, the most popular types of businesses were mail order retail, construction, buying/selling property, retail and management consultancy. A surge in people buying online during lockdown helped fuel the rise in mail order/retail.

Here are the top 10 UK locations for start-ups:



David Luck, chief executive of Capital on Tap, said: “The disruption caused by coronavirus pandemic has had a significant impact on people, businesses, and the global economy, so it’s inspiring to see so many entrepreneurs backing themselves and seizing the opportunity to start their own businesses.”

In Liverpool city region, would-be entrepreneurs can also access free assistance via the Enterprise Hub programme. It is part-funded by European Regional Development Fund and delivered by social enterprise The Women’s Organisation. The scheme offers free advice and guidance to those living in the city region thinking of starting a business.

Enterprise Hub support is available to individuals looking to start a business within the Liverpool city region, or businesses under 42 months looking to grow in the Liverpool city region.

It has a particular focus on encouraging more women to start their own businesses. The NEA data indicates there remains a gap in this area. Of all the people who accessed the NEA across the UK, 40% were women. Around 56,000 went on to start a business.

You can get more details about the NEA from your local Jobcentre or by clicking here. For more details on Enterprise Hub, click here

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