The area of Gwent came top after experts at IT service software InvGate analysed data from the Office for National Statistics to find the number of registered businesses in local authorities across the UK in 2022 and 2023.
The final ranking was determined by the local authorities with the greatest percentage increase of new businesses from 2022 to 2023.
Torfaen had an 11.74 per cent increase in new businesses between 2022 and 2023. The area grew from 2,215 businesses in 2022 to 2,475 in 2023 for a total increase of 260 establishments and 215 of them were in the wholesale sector.
Blackpool came second with new businesses increasing by 7.24 per cent between 2022 and 2023.
Third in the ranking is North Warwickshire, with an increase of 5.03 per cent in business establishments between 2022 and 2023.
From 2,785 businesses in 2022, North Warwickshire climbed to 2,925 in 2023 for a total increase of 140 – 55 being in the transport and storage sector and 35 being in the accommodation and food services sector.
Ariel Gesto, CEO of InvGate, said: “Choosing the right location is one of the most important factors for any startup.
“The top ten ranking could be an indication that smaller cities offer greater opportunities to build a business in a less crowded market.
“Rather than jumping straight in with London or Manchester, one could grow their establishment in a smaller area and then branch out to the highly populated areas later down the line.”