SME insurance provider Superscript analysed ONS business data and local population data to identify the places that have seen the highest proportion of small business growth.

Small business in Hull grew by 465, an increase of 7.6 per cent, the fourth largest growth city behind Wolverhampton, Worcester and Carlisle.

The increase largely driven by the transport and storage, construction, and production sectors, which each increased by more than 100 small businesses.

In Sheffield, the amount of small businesses increased by 575, representing a 3.6 per cent rise. The transport & storage sector was the fastest growing in Sheffield over the last year, which grew by 135 small businesses, a 15 per cent increase.

The number of small businesses in Scarborough increased by 120, representing a 2.9 per cent increase.

Superscript’s nationally representative survey of 1,000 new small business owners suggests that the cost-of-living crisis seems to be a factor behind a lot of new businesses.

Seven out of 10 respondents to the survey agreed that the cost-of-living crisis spurred them to start a business to supplement their salary.

Cameron Shearer, chief executive of Superscript, said: “It’s encouraging to see so many new entrepreneurial towns and cities make this year’s top 10. These places have bucked the national trend, with the macroeconomic challenges causing a drop of 83,000 small businesses nationwide.

“However, history teaches us that great ideas and innovations are born out of challenging times, with businesses evolving quickly. That is why flexibility and customisation have become the most important insurance requirements of small businesses coming to us for cover.”

Hull, Sheffield and Scarborough ranked amongst most entrepreneurial places in UK