Are you a Nigerian entrepreneur about to start up a business in the UK? The first thing to note is that choosing the right city for your business is as important as launching your business. This means that you can have the right business plan, enough capital, and even a reliable network, but if you do not set up in a city that supports your business plans, you are likely to struggle with growing your business in the UK. The UK is known as a global financial hub with one of the best economies. The UK is ranked as the 6th largest economy by GDP globally, which makes it one of the best choices for starting up a business.
In this article, we will be exploring the top UK cities for Nigerian entrepreneurs and what business each location is best for. Starting from tech, to fashion, to food, or even consulting, this article serves as a guide to help you make informed decisions when choosing a city for your business in the UK.
Top 5 UK Cities For Nigerian Entrepreneurs
As a Nigerian entrepreneur looking to start up a business in the UK, we’ve listed out 5 cities with a promising environment for your business to thrive in, and also with a balanced cost of living. Other considerations you should have is your tax obligations, and access to other infrastructure like banking and coworking spaces. Below are the 5 best cities that are best for a Nigerian entrepreneur to start a company in the UK.
London
London, being the capital of the UK, is one of the most popular and most visited cities in the world. Beyond that, it is ranked as a good place for both national and international finance because it generates about 30% of the UK’s GDP. It also has a diverse economy that has a good influence on the finance, media, tourism, and technology sectors. So if you want to launch a Fintech startup or offer a consulting service, London offers the diversity that is needed for your business to scale up quickly.
With a total population of over 7.5million people, London also has a large and thriving Nigerian community. This, on its own, can give you a sense of cultural familiarity and also a community for your business. This is, in fact, perfect for you if you were running a business in the food, fashion, or beauty industry. This is because Nigerians in diaspora would most certainly want something familiar to them, especially when it is food, clothes, style, etc.
However, starting a business in London can be as challenging as it is exciting. This is because statistics have shown that the ever-thriving city has a five-year start-up survival rate of about 39.35%, which explains that about 40% of new businesses in London manage to stay running for at least five years. This survival rate is quite low, especially when compared to other cities and areas. Despite this, the countless opportunities that are available in London pose a greater advantage to Nigerian entrepreneurs, especially if you are willing to do business in a competitive environment. You should also note that the cost of living in London is extremely high, and this implies that renting an office or a shop would be costly. So, if you are working with a limited budget, you might want to weigh your expense options properly and consider starting small before moving to a physical space.
In summary, London has a lot of multinational companies and businesses, which makes it a good place for innovation to thrive. And if you want to start your business in the UK as a Nigerian, London remains a top choice for you.
Leeds
If you are thinking of a city that brings a balance between affordability and productivity, you should think of Leeds. Leeds has one of the most diverse economies in the UK and stands as one of the largest centres for legal and financial services in the UK. Aside from this, the city has recorded a significant growth in the creative and digital industry, which has in turn contributed to its diverse economy. It is one of the best choices for you as a Nigerian entrepreneur if your business offers consulting services, financial solutions, content creation, health care services, etc.
With a population of 455,123 people, Leeds also has a thriving community of Nigerians, especially students studying at the University of Leeds and other institutions located in the city. This means that you can launch a business that caters to students, young professionals, and even other Nigerians without any fear of not thriving. This is so because Leeds also offers a welcoming hand to grow and refine your business ideas.
Leeds has a five-year start-up survival rate of 42.88%, which implies that almost half of the businesses launched in Leeds survive the first five years. This further proves how good and welcoming the city’s economy is for businesses. Also, the cost of living in Leeds is relatively moderate, and the average cost of rent is about £654. The affordability of living in Leeds is usually the key factor for starting a business there. So if you are on a budget in launching your business, Leeds is a good option for you.
In summary, Leeds offers a blend of affordability, opportunities, and growth for a Nigerian entrepreneur, and if you want to start a business while enjoying a balanced cost of living, Leeds remains a top choice for you.
Coventry
Believe us when we say that most Nigerian entrepreneurs are sleeping on the potential in Coventry. For the longest time, Coventry’s economy was majorly fueled by the automotive industry, but has now diversified into other industries like the creative industry, finance, leisure, and logistics sector, amongst many others. Coventry has a five-year start-up survival rate of 44.2% which shows that nearly half of the businesses launched in the city survive the first five years and are capable of sustaining themselves. This shows how promising and supportive Coventry is to the growth and development of a business.
With a population of 359,262 people, Coventry is well known for its multicultural population, comprising young people, students, and a notable number of Nigerians. The city also attracts thousands of students every year because Coventry University and the University of Warwick are located in it, thereby creating a constant need for businesses in sectors like beauty, content creation, education consulting, Afro-Caribbean food, and fashion services. This has made Coventry a strong, supportive environment filled with many opportunities for businesses and entrepreneurs to thrive in.
Coventry is also regarded as a hub for long-term growth for Nigerian entrepreneurs because of its rapid growth and significant investment in retail infrastructure, housing, and logistics. Apart from this, you can access business support from local platforms like Coventry and Warwick Chamber of Commerce mentorship programs, Coventry City Council grants, and the Coventry and Warwick Growth Hub. These platforms provide a good range of support, from business advice to offering grants and networking opportunities. Coventry also offers a moderate cost of living, which makes it a good option if you want to balance your profits with your cost of living.
In summary, Coventry has proven its ability to adapt to any economic approach, especially with how the city was able to quickly evolve beyond the automotive industry to accept other industries within it. And if you are looking for a city in the UK that would allow you to grow your business at a steady pace, Coventry is your top option.
Glasgow
Being the largest economy in Scotland, Glasgow houses diverse industries ranging from the creative industry to the communication industry, from the biosciences to healthcare, to even the finance and tourism industry, amongst others. Tourism ranks as one of the most significant contributors to Glasgow’s economy, contributing over £300 million annually. As a Nigerian entrepreneur in the creative space, the digital marketing industry, healthcare, or even the fintech industry, Glasgow has a system and structure that allows you to start small and scale fast and smartly, as you evolve.
Glasgow has a five-year start-up survival rate of 40%, which makes it a positive environment to start a business. It implies that many businesses can scale through the challenges of starting up a business, and it doesn’t just end there; they are also able to evolve and establish themselves in the market. On top of that, the cost of living in Glasgow is relatively low when compared to London and some other cities in the UK. This is what makes it one of the best options for any Nigerian entrepreneur seeking to establish a business in the UK. This implies that you can start up your business on a good budget while maintaining your regular cost of living without fear of not scaling through.
Glasgow also has a wide range of start-up support organisations like Elevator UK, Scottish EDGE, Glasgow City Innovation District, and Business Gateway that provide access to business training, mentorship, grants, and seed funding. Most of the services provided by these platforms are tailor-made especially for immigrant founders. This means that as a Nigerian entrepreneur seeking to start up your business in Glasgow, UK, you can access most of the services provided by these start-up support organisations. Also, Scotland has a reputation for being inclusive, thereby making it a haven for Nigerian entrepreneurs.
With a total population of 591,629 people, Glasgow also has a growing Nigerian community comprising students from the University of Glasgow, which, in turn, calls for a need for businesses that are targeted at serving the needs of students and other immigrants. This means that you can decide you start up a business in sectors like education consulting, logistics, fintech, beauty and fashion, etc. In summary, if you are looking for a city that has a creative and supportive ecosystem, giving room and support for growth, flexibility, and a sense of community for your business, Glasgow is the best choice for you.
Manchester
With a reputation as the world’s first industrialized city, Manchester has evolved into one of the UK’s most popular urban centres, with a vibrant economy comprising diverse sectors like the sciences, engineering, sport, art, and the creative industry, among others. In simpler terms, Manchester is a good environment for businesses in real estate, media, fashion, tech, food, education, and logistics, because of its roots in the creative and digital industries. Manchester is also home to a growing number of Nigerian-owned businesses, ranging from food delivery services like H.Q., Fallowfield, and Carlyx Drinks Ltd, to digital agencies. Aside from this, Manchester has a thriving Nigerian community, which can give you a sense of cultural familiarity and a community for your business.
Manchester also poses as a conducive environment for starting a business as a Nigerian entrepreneur, with a five-year start-up survival rate of 37.52% implying that a good number of businesses can survive the first five years after launching. And beyond surviving, they can thrive, scale, and contribute to the economy of the city and the UK at large. Manchester also has a good range of business support organisations like GC Business Finance, Greater Manchester Chamber of Commerce, and Business Growth Hub. And these organisations exist to provide access to business training, mentorship, networking opportunities, low-interest loans, and business grants, among others.
Manchester has a population of 305,515 people. It also attracts thousands of international students, including Nigerians, every year because of the University of Manchester and Manchester Metropolitan, among other institutions located within it. This also creates a need for businesses in sectors that are targeted at students’ welfare, young professionals, and others. Furthermore, when compared to London, the cost of living in Manchester is relatively affordable, especially in terms of office rent, housing, logistics, and others. But when compared to Glasgow, Coventry, Leeds, and some other cities in the UK, it is relatively high. However, it has proper infrastructure, a blend of multicultural population, and a good entrepreneurial culture, which, in turn, guarantees growth in any business, especially for a Nigerian entrepreneur.
In summary, if you are looking for a city in the UK with a moderate cost of living that is still rich in resources to launch your business in, Manchester is a top option for you.
Factors To Consider Before Choosing A UK City For Your Business
As a Nigerian entrepreneur trying to launch your business in the UK, the last thing you want to do is to follow trends or the crowd when trying to choose a city to launch your business in. This is because you wouldn’t want to launch in a city that is inconducive for your business type.
Before you launch your business in any city in the UK, you have to ensure that the location you are choosing aligns with your business needs, vision, and resources to avoid wasting time and finances. A market research would show the following are key factors you should consider before choosing a city to launch and grow your business in the UK.
- Target Audience: Before you launch your business in a city in the UK, you need to evaluate the sector or industry your business belongs to, who your target audience is, and where they are mostly based. This is because your business is supposed to be located in a city that comprises at least 50% of your target audience.
- The Cost of Living: Some cities in the UK are more expensive to reside in when compared to some other cities, for example, London and Manchester. So, if you are on a tight budget, you should consider cities that are more affordable to live in, especially if you are just starting up your business. It is better to start small and scale from there than to start in expensive cities and end up being unable to survive the first five years of business.
- Business Sector: Some sectors thrive better in some cities than others. For example, the tech industry, digital media, and fashion industry would thrive better in Manchester, while businesses in the creative industry would thrive better in Glasgow. So you should consider how well the economy of the city supports the sector of your business.
- The Survival Rate of Businesses: If the city has a high five-year start-up survival rate, there is a high chance that your business would thrive in that city. The survival rate is what determines the scalability and stability of your business in that city.
Conclusion
As a Nigerian entrepreneur looking to launch a business in a city in the UK, the above-mentioned cities are a few out of the rest you can try out. Before choosing any city, you should look at the key factors mentioned and also do more research on the city to ensure that it aligns with your business goals and vision.
