In my 20 years of experience across various sectors, I've seen many cities compete to attract businesses. Yet, Manchester consistently stands out. As someone who has founded and scaled startups across Europe, I believe that understanding what truly drives a city's business ecosystem is crucial. So, let’s dive into what sets Manchester apart.
Manchester has transformed itself into a business powerhouse over the past two decades. Its ability to attract and retain both large corporations and startups is rooted in strategic planning and execution. The city combines talent, infrastructure, and affordability in ways that other locations simply can't match. Here's why businesses today are choosing Manchester.
Growing Industries in Manchester
Manchester features a diverse and well-developed industrial base, critical for long-term growth. The technology, creative, and finance sectors have accelerated in recent years. Startups find fertile ground here, especially in:
- Creative industries, boosted by MediaCityUK’s success after the BBC’s relocation in 2011.
- Fintech, given Manchester’s rising prominence in financial services.
- Cybersecurity, fueled by GCHQ opening its northern base in 2019. This has built a cluster now recognized as one of Europe’s most promising.
The city's approach to connecting legacy industries with cutting-edge ones fosters collaboration. For example, its textile history has helped cement Manchester’s role as a hub for fashion ecommerce giants.
Talent Availability
A city’s workforce is its lifeblood. Manchester, home to three major universities, generates an incredibly talented pool of graduates across tech, sciences, and business. What's unique here isn’t just the volume of talent, it’s their willingness to stay. Manchester’s graduate retention rates are among the highest in the UK.
Companies like Disney and Accenture have notably established operations here, drawn by this workforce. They aren’t just hiring for entry-level roles anymore; even senior positions now routinely get filled locally, signaling the ecosystem’s maturity.
Cost Advantages over London
Let’s talk about money. London may hold status, but businesses increasingly find themselves priced out. Manchester offers significantly lower costs, not just for office space but also for salaries and general living expenses. When you compare expenses in London to Manchester, companies save on average 30-40% annually on operational costs.
This financial breathing room means startups don’t have to burn their capital as quickly. Larger firms, meanwhile, enjoy immediate ROI when they expand north.
Connectivity and Logistics
Geography plays an influential role in Manchester's appeal. The Manchester Airport, a major international hub, connects the city to over 200 destinations. Additionally, the integrated transport system makes it easy to move across the city and beyond. This connectivity allows for seamless interaction between local businesses and international markets, making global expansion highly feasible for firms based here.
Infrastructure Built for Growth
Manchester's development plans emphasize zones where businesses can thrive. Bruntwood SciTech, for example, is building a £1.7 billion innovation district. Dedicated to biotech and material science, this area is designed to link research, healthcare, and startups, creating a “triple helix” effect.
These tailored spaces enable companies to innovate directly alongside top researchers and healthcare institutions, something many cities fail to offer. It makes scaling, particularly in high-tech fields, more accessible and efficient.
How to Maximize the Manchester Opportunity
If you're considering operating or expanding in Manchester, a few tips can streamline your journey:
- Engage with local organizations. Groups like Manchester Digital and Bruntwood SciTech play pivotal roles in fostering collaboration between businesses, universities, and government.
- Start small, scale carefully. Utilize coworking spaces or pay-as-you-grow office schemes available in Manchester until your team finds its footing. Companies like Orega offer excellent flexible workplace options.
- Leverage local talent. Make links early with local universities for recruitment opportunities. Many organizations, such as The University of Manchester, run startup-specific programs and career fairs.
- Nestle within a cluster. Whether it’s MediaCity for creative businesses or Oxford Road Corridor for healthcare innovations, Manchester’s industry-specific hubs maximize networking opportunities.
- Know the financial incentives. Manchester has targeted grant schemes and enterprise zones that reduce costs or taxes for businesses in specific areas.
Common Mistakes to Avoid
Venturing into a new ecosystem is exciting but rife with challenges. Here’s what to avoid:
- Underestimating competition. While space in Manchester might cost less, competition for talent remains stiff given the demand from high-caliber firms relocating there.
- Overlooking cultural nuances. Northern England’s business community operates differently from London’s, emphasizing trust and genuine connections over flashy presentations.
- Neglecting infrastructure planning. Don’t assume every area of Manchester fits every need. Pick your location based on industry relevance and access to local resources.
- Skipping local partners. Manchester thrives on collaboration. Dismissing the need for partnerships with local entities could hinder your success.
Deep Insights for Founders
Manchester isn’t an up-and-coming player. It’s fully established as one of Europe’s foremost business centers outside London, but unlike its southern rival, there’s room for growth, and importantly, less red tape. Founders are often surprised by just how approachable and supportive the ecosystem is.
For example, I’ve witnessed nascent startups find their first investors through coworking events at hubs like Accelerate Places. There’s an underlying spirit here: when one startup wins, so does the community. It’s this camaraderie that keeps pushing the city forward.
Final Thoughts
Deciding where to locate a business is less about hype and more about strategy. Manchester works because it has substance, borne of decades of intentional investments in education, transport, and innovation centers. If you’re a founder looking for a place that combines creativity, affordability, and growth potential, Manchester doesn’t just make sense, it’s the smart move.
Let this city inspire ambitious ideas. Its ecosystem is ready to support your business’s next steps, whether you're launching, scaling, or looking for a fresh start.
FAQ
1. Why is Manchester considered a business powerhouse?
Manchester's combination of talent, infrastructure, and affordability has transformed it into a business hub, attracting both startups and major corporations. Discover why Manchester stands out
2. Which industries are thriving in Manchester?
Key industries in Manchester include technology, creative sectors, fintech, and cybersecurity. MediaCityUK and GCHQ's presence have significantly boosted these fields. Explore top industries in Manchester
3. How does Manchester compare to London for businesses?
While London offers status, Manchester provides significant cost savings, lower salaries, and living expenses while fostering growth across various sectors. Discover Manchester's advantages over London
4. How does Manchester support talent retention?
Manchester's high graduate retention rates, supported by its three universities, create a strong, skilled workforce attractive to businesses. Learn about Manchester's graduate retention
5. What makes Manchester's infrastructure unique for businesses?
Manchester offers purpose-built innovation zones like Bruntwood SciTech’s £1.7 billion innovation district for biotech and material science, fostering collaboration and innovation. Learn about Manchester's business zones
6. Why is Manchester attractive for startups?
Startups benefit from reduced operational costs, access to local talent, and a supportive ecosystem designed to nurture innovation. Explore Manchester's opportunities for startups
7. How has MediaCityUK impacted Manchester?
The BBC's relocation to MediaCityUK triggered rapid growth in Manchester's creative and digital industries, solidifying its reputation as a creative hub. Read about MediaCityUK's success
8. What role does the local government play in Manchester’s business growth?
Manchester's government and local organizations work collaboratively with businesses and universities to drive innovation and economic growth. Learn about Manchester's government initiatives
9. How does connectivity enhance Manchester's business appeal?
Manchester Airport connects the city to over 200 destinations worldwide, and its integrated transport system ensures seamless local and global connectivity. Discover Manchester's connectivity
10. What financial advantages do businesses gain by operating in Manchester?
Businesses save 30-40% annually on operational costs in Manchester compared to London, allowing for financial breathing room and capital efficiency. Explore Manchester’s cost benefits
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.