Birmingham has secured the second spot in a new ranking of the UK's leading business hubs for aspiring entrepreneurs, according to research by company formations agent 1st Formations. The study, which analysed Google search behaviour across the UK's largest cities, reveals that nearly half (46%) of people in the UK now have a side hustle, up from 39% in 2025.
Birmingham's entrepreneurial drive
Claiming the No. 2 position, Birmingham demonstrates strong entrepreneurial ambition, with residents showing a keen interest in launching passion-led ventures and creating new income streams. The city's performance highlights a growing trend of locals turning hobbies into businesses, reflecting a broader national shift towards self-employment and side projects.
The top 10 cities for entrepreneurial interest, based on search volume, are London, Birmingham, Manchester, Glasgow, Leeds, Bristol, Liverpool, Newcastle, Edinburgh, and Coventry. While London records the highest overall search volume, the picture changes when population size is taken into account.
Per capita rankings shift
When adjusted on a per 100,000 capita basis, the rankings shift considerably. Norwich, Dundee, Oxford, Portsmouth, and Preston emerge as the UK's top five locations for entrepreneurial interest, indicating that the appetite to turn personal passions into businesses is most concentrated in these areas rather than in the country's largest cities.
This suggests that smaller cities and towns may offer unique advantages for side hustle entrepreneurs, such as lower living costs and a tighter-knit community support network, which can be crucial for early-stage ventures.
Expert insights on entrepreneurial spirit
Graeme Donnelly, Founder and CEO at 1st Formations, commented: "Lots of factors can shape the entrepreneurial spirit. Established university cities often benefit from strong innovation ecosystems, and lower cost of living and business running costs than major hubs like London. Together, these advantages can make self-employment and starting a passion-led business feel more attainable, giving aspiring entrepreneurs the confidence to turn their ideas into reality."
Donnelly's remarks underscore the importance of local economic conditions in fostering entrepreneurship. For Birmingham, its strong ranking suggests that the city provides a supportive environment for side hustlers, despite not being the largest or most expensive UK hub.
Implications for Birmingham's economy
The findings have significant implications for Birmingham's local economy. With a high level of interest in side hustles, the city could see a surge in new business formations, contributing to job creation and economic diversification. Local authorities and business support organisations may need to adapt their services to cater to this growing segment of part-time entrepreneurs.
As the side hustle culture continues to grow, Birmingham's position as a top hub could attract more aspiring entrepreneurs from across the UK, further solidifying its reputation as a dynamic business destination.
