The next generation of business: What Markel's new study reveals

A new study from Markel sheds light on how British entrepreneurship is changing. It looks at who's starting businesses, where they're thriving and what helps them last.

The picture that emerges is less about big cities and more about new ways of working and thinking.

Where businesses thrive

Markel's research ranks UK cities by business survival, closure rates, broadband strength and household income growth. Belfast leads the list, followed by Cambridge and Exeter.

Each city brings a different strength. Belfast scores well for stability and digital access. Cambridge combines high incomes with steady growth. Exeter has the best five-year survival rate of all.

It shows that success doesn't come from being in the biggest or richest city. It's actually to do with offering the right mix of support, infrastructure and opportunity. A strong local economy helps, but so does fast internet and a reliable customer base.

If you're starting up, it's worth thinking about what your business needs most. A creative agency might thrive in a city with good networks and broadband. A local café or service business might do better somewhere with rising household incomes.

How new founders are funding their ideas

The study also explores how entrepreneurs finance and shape their ventures. Older business owners still rely heavily on savings or loans. Younger ones look elsewhere.

Many Gen Z founders use crowdfunding, grants or competitions. They're also more influenced by social media creators than by government advice or even family. That's a big cultural shift. It reflects a generation that learns, connects and raises capital online.

It also hints at the growing importance of visibility. Building a brand on digital platforms can attract customers and investors at the same time. But it demands transparency and consistency. Audiences can tell when something's forced.

The real test is survival

Starting a business has never been easier. Keeping it going is harder. That's where the survival data matters.

Exeter stands out for long-term endurance, even if its digital infrastructure lags slightly behind others. It suggests that local resilience and cost control can outweigh flashier advantages.

Cities with fewer closures aren't always the ones with the most durable firms. Longevity depends on how well founders adapt, not just how strong the starting conditions look.

In the long run, adaptability might be the real mark of success. Economic shocks and changing markets tend to expose weak models fast. Those who plan conservatively and stay flexible have the best chance of making it past year five.

Lessons for future founders

The Markel findings point to some simple but useful lessons.

• Match place to purpose. Think about what your venture truly needs – people, internet, customers or cost base. Choose a location that fits, not just one that sounds good.

• Explore all routes to funding. Crowdfunding and community funds are becoming normal options, not last resorts.

• Plan for staying power. The early buzz fades quickly. Build a model that can handle lean months and slow growth.

• Stay real online. Digital influence helps, but authenticity keeps it.

• Look for connection. Local partnerships, mentors and networks still matter, wherever you are.

A broader shift across the UK

The Markel study fits a wider national trend. Nearly a third of UK adults now run or plan to start a business within three years. More women are founding companies than ever before. But fear of failure still holds many people back.

One encouraging sign is that opportunity is spreading. Cities like Belfast and Exeter are proving that innovation doesn't have to cluster around London or Manchester.

With better digital access and local growth, smaller centres are carving out space for ambitious people to build sustainable businesses.

That's good news for the economy and for anyone who wants to start small and grow steady. The next wave of business leaders won't all look or work the same way.

They'll come from different places, fund themselves differently and measure success in new terms – not just size or profit, but independence, creativity and balance.

Read the full study now