Birmingham leads the way for UK startups outside the capital

Birmingham is the most active region for startups outside London as it narrowly beat Manchester in the entrepreneurial stakes.

Related: Beyond Tech City: why UK startups should look outside East London

The figures, which were revealed by StartUp Britain, showed that Greater London topped the pile with 136,939 businesses registered with Companies House in 2013 and Birmingham saw 16,281 ahead of Manchester with just 11,765.

“We’ve been looking at these figures carefully for three years since the campaign began and it’s clear the UK’s start-up community is growing year-on-year,” stated Emma Jones, co-founder of StartUp Britain. “These figures are raw and hot off the press but the new regional statistics reveal a power house in the South East and London – which is what we were expecting - but there are also impressive pockets of entrepreneurial activity in the North West, South Yorkshire, the Midlands and Scotland.”

In total there were 526,446 new businesses registered with Companies House in 2013, beating the totals of 484,224 in 2012 and 440,600 in 2011 and the figures are part of StartUp Britain’s Daily Tracker online tool that analyses businesses registered at Companies House.

“We have seen more private sector job growth than anywhere outside London, and a large component of that is ... start-ups and small firms,” said Neil Rami, chief executive of Marketing Birmingham told The Sunday Times.

Related: YPlan, Dattch and Hassle named among best UK startups of 2014

A large number of the startups launched in London have taken advantage of the Tech City development in East London. Figures release last year showed that between March 2012 and March 2013 there were 15,720 businesses set up in the EC1V Silicon Roundabout area thus becoming the most prolific area of a city in the country for startups. The Borough and Bermondsey area accounted for a further 5,190 over the same period and those numbers will only be higher in 2013.