Small business owners shape workplace culture and success, yet more than half have struggled with poor mental health in the past year. Because leadership well-being directly impacts team management, a new study by The Co-operative Bank analysed cities across the UK to uncover where entrepreneurs are most likely to thrive.
The ranking evaluated key metrics, including average commute times, the number of co-working spaces, activity, and games venues for work socials, annual retail and co-working-space prices, and ONS city-wide resident happiness scores.
The top 10 cities for business owners
The overall rankings are based on key infrastructure and well-being metrics
| Rank | City | Avg. Commute Time (Mins) | Co-Working Spaces | Activities & Games Venues | Local Happiness Score (out of 10) |
| 1 | Liverpool | 28 | 26 | 149 | 7.3 |
| 2 | Nottingham | 30 | 22 | 101 | 7.2 |
| 3 | Exeter | 32 | 9 | 39 | 7.3 |
| 4 | Southend-on-Sea | 33 | 4 | 51 | 7.3 |
| 5 | Norwich | 32 | 3 | 88 | 7.1 |
| 6 | Bristol | 31 | 39 | 125 | 7.2 |
| 7 | Edinburgh | 27 | 24 | 160 | 7.3 |
| 8 | Milton Keynes | 25 | 10 | 80 | 7.4 |
| 9 | Swansea | 17 | 5 | 46 | 7.3 |
| 10 | Newcastle upon Tyne | 33 | 9 | 100 | 7.3 |
Note: Co-working spaces and activity or games venues represent raw figures; original scoring accounted for density per 10,000 residents.
Key insights from the top 5 locations
Liverpool
Liverpool took the top spot overall, combining accessible, flexible workspace (averaging £1,484 per year) with high social connectivity. The city has also benefited from sustained investment in culture and creativity, notably through hosting the Eurovision Song Contest 2023, which delivered a £54.8 million boost to the local economy. Large-scale events strengthen the local business ecosystem by increasing footfall and boosting hospitality and retail.
Nottingham
Ranking second, Nottingham pairs a 30-minute average commute with flexible professional environments averaging £1,831 annually, allowing business owners to access professional setups without the long-term overheads of traditional offices.
Exeter
Third-placed Exeter demonstrates that well-being is not dependent on city size. Despite a smaller commercial market, it offers co-working spaces averaging £1,805 per year and retail rental prices at £17 per square foot annually.
Southend-on-Sea
Southend-on-Sea stands out for affordability, providing co-working spaces at an average of £1,854 per year alongside the lowest retail rental costs in the top ranking at £7 per square foot per year, making it particularly viable for small retail start-ups.
Norwich
Recognised for its UNESCO City of Literature status, Norwich fosters creative culture despite higher co-working costs (£2,664 annually across just three locations). However, it balances this with affordable retail rentals averaging £10 per square foot per year and 88 social venues.
Cost variations and expert advice
Commercial costs vary widely across the UK. London topped the most expensive locations, reaching £31 per square foot for retail space and £3,960 annually for co-working, in contrast to the affordability found in regional hubs like Southend-on-Sea.
To maintain personal well-being while growing a business, Lisa Galley, Head of Business Banking Products at The Co-operative Bank, advises that business owners can alleviate stress by leaning on support networks, making time for social connections, prioritising financial planning, and using financial tools responsibly.