Start-up hotspots: These are the top places to launch a business in Scotland

Clackmannanshire has been singled out as the best place in Scotland to start a business, while Edinburgh has been ranked only seventh.

The City of Aberdeen was named the worst area in Scotland to launch a business, with closures almost twice as common compared to openings. Software firm MRPeasy analysed data from the Office for National Statistics (ONS) on business openings and closures in each UK local authority between 2022 and 2024 to compile its report.

In Scotland, Clackmannanshire topped the study with business owners there more likely to succeed than any other place north of the Border. Over the last two years, 310 companies have opened in the area, compared with the 300 closures recorded during the same period.

Aberdeen City emerged as the worst area in Scotland to launch a business, with closures almost twice as common compared to openings in the region.

Glasgow City ranked second among Scotland’s best areas to launch a business. With larger figures than anywhere else nationwide, the city has the second-highest ratio of business openings to closures. Some 6,495 businesses have opened their doors in the last two years, while 6,380 have closed, meaning the area ranks slightly behind Clackmannanshire with a ratio of openings to closures of 1.018:1, versus Clackmannanshire’s 1.033:1. There were 745 new businesses established in the City of Glasgow area during the first quarter of 2024, while 695 existing companies closed down.

Midlothian ranks third in the list of the top Scottish areas to start a business, with an opening/closure ratio of 1.008:1. Between the first quarter of 2022 and the same period in 2024, exactly 670 businesses were registered in Midlothian, while 665 officially closed. January, February and March of 2023 proved to be the best months for businesses in Midlothian, with reports of 75 openings and 65 closures at a rate of 1.154:1.

West Lothian is the fourth best area to launch a business, according to the study, and the final location with a higher rate of openings than closures. From 2022 to 2024, West Lothian saw 1,355 businesses open and 1,350 close, with a ratio of openings to closures of 1.004:1.

North Lanarkshire rounds out the top five areas in Scotland to launch a business, with a ratio of openings to closures of 0.990:1. Business openings totalled 2,435 over the two-year period, while closures sat at 2,460. The third quarter of 2023 was the best period for businesses, with 270 new ventures launching and 205 closing, securing a higher ratio of 1.317:1.

With larger figures than anywhere else nationwide, the City of Glasgow has the second-highest ratio of business openings to closures.

West Dunbartonshire ranked sixth among Scotland’s best areas to establish a business. Since 2022, 540 businesses have opened in West Dunbartonshire, while 555 have closed. The ratio of openings to closures is 0.973.

The City of Edinburgh ranked seventh with a ratio of openings to closures of 0.947:1 between 2022 and 2024. Over the period, 4,960 businesses were established, and 5,235 closed, the data reveals. July, August and September of 2023 have been the best periods for businesses in the area, with 570 and 470 openings and closures registered, respectively, or a ratio of 1.213:1.

The South Lanarkshire council area was named the eighth-best region in Scotland for launching a business. Over the last two years, 2,500 companies have opened in the area, and 2,650 closures have been recorded, at a ratio of 0.943 openings for every closure. During the third quarter of 2023, 290 businesses opened and 235 closed, resulting in a higher ratio of 1.234 compared to the average since 2022.

East Renfrewshire grabbed ninth spot in the study with 725 companies setting up in the area since 2022. In contrast, 770 businesses shut down during the same period, giving the region a ratio of 0.942:1.

Renfrewshire, meanwhile, saw business openings top 1,310 over the last two years and closures over the period came in at 1,405. The ratio of openings to closures was 0.932. Aberdeen City emerged as the worst area in Scotland to launch a business, with closures almost twice as common compared to openings in the region, at a ratio of 0.654:1.

Looking at the wider picture, 724,625 businesses opened in the UK from 2022 to the first quarter of 2024, while 800,165 closed during this time. On average, for every ten businesses that opened nationwide, about 11 closed down. England is the best nation in the UK to launch a business, with a slightly better ratio of openings to closures (0.912:1), while Northern Ireland ranks as the worst (0.808:1). Scotland and Wales have ratios of 0.887:1 and 0.874:1, respectively.

Mike Lurye, director of business development at MRPeasy, said: “England is the best nation in the UK to start a business, having a higher ratio of openings to closures than Scotland, Wales and Northern Ireland. Just over 9 per cent of all UK local authorities have a higher rate of business openings than business closures in the last two years. Two areas of London and three spots in the East of England rank among the ten best areas to start a business. Meanwhile, Clackmannanshire was Scotland’s highest-placed area in the study, at 21st overall, and Belfast was top in Northern Ireland, taking 29th spot.”

The best Scottish areas to launch a business:

1. Clackmannanshire
2. Glasgow City
3. Midlothian
4. West Lothian
5. North Lanarkshire
6. West Dunbartonshire
7. City of Edinburgh
8. South Lanarkshire
9. East Renfrewshire
10. Renfrewshire