Birmingham ranks fourth in Britain for young entrepreneurs

Birmingham has been named the leading location for young entrepreneurs in the West Midlands, with the highest number of under 25s starting their own businesses compared to the rest of the region following a study.

The study was conducted by virtual office provider Virtual HQ and analysed every company incorporated (registered to companies house) in the UK over the 12 months to July 2026. They also analysed the date of birth of every director appointed at incorporation meaning they studied 474,121 companies and 583,861 founders in total.

Each of the UK's 360 local authorities was ranked on the share of its founders aged under 25 and the study highlighted that 1,849 out of14,379 directors appointed to new companies over the year were under 25. This sits at 12.9%, compared to a national figure of 8.7% making Birmingham the highest share in the West Midlands and the fourth-highest in the UK.

Sandwell ranked third place in the West Midlands where 456 of 3,897 founders were under 25, which equates to 11.7%. This was followed by Walsall, with 11.2% of its founders aged under 25.

Andrew Manning, managing director at Virtual HQ, said: "Setting up a limited company has never been quicker or cheaper, and these figures show how many people are now doing it in their early twenties rather than waiting until mid-career. For anyone setting up a business it's important to remember that incorporating puts you on a public register.

“Every director has to provide a service address that anyone can look up, and for a young founder working from a bedroom or a university flat, that means their home address is searchable by customers, suppliers and anyone else who cares to check. It is one of the easiest things to get right at the start and one of the most awkward to unpick later, so it is worth a few minutes' thought before the application goes in."