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Why the North of England Is Set to Become the Next Tech Capital
Glassdoor Team
Glassdoor Team | Author & Career Expert at Glassdoor | 4 Mar 2019
There is no doubt that the start-up culture in the UK is on the rise with a record 10,016 startups launching in 2017. However, what’s interesting about this statistic is that whilst there was, unsurprisingly, a significant surge in the Silicon Roundabout which has long been considered the spiritual homeland for the tech community, the North East also saw a phenomenal increase by 76 percent. So why are new businesses starting, now, to look to the North? In this article, we will examine some of the reasons that start-ups are increasingly looking outside of London to grow and develop their businesses.
1. The Cost
Running a business in London is expensive — companies must offer high wages as well as deal with high rent. In fact, rental costs are only set to increase in the next five years. When businesses opt to set up shop in an area with a cheaper cost of living, they are able to make far higher profits at a far earlier stage which is, unsurprisingly, incredibly attractive to start-ups.2. Universities
City Universities can offer an inordinate amount of talent, providing start-ups with some seriously passionate and innovative individuals. However, more than that, Northern Universities have also collaborated with a number of companies for some fantastic government-funded projects. This includes the £61 million National Graphene Institute as well as the £325 million Sir Henry Royce Institute for Advanced Materials Research and Innovation, both of which have proved incredibly enticing to start-ups and a significant incentive to move to the North.3. Manchester
Manchester deserves its own place in this list, as it has proven to be particularly helpful in driving businesses to the North. This is due in part to the BBC’s decision five years ago to move 2,000 of its staff to Manchester, which helped to inject a huge amount of dynamism and creativity in the city. In fact, not only did the BBC transfer their current staff, but they also began to employ northern tech talent for some of their software development work. The knock on effect saw the creation of what became “media city,” a hot spot for creativity in the North.4. Investment
A number of influential accelerators have also settled in the North and brought with them a large amount of capital. This includes Ignite100, which has one of its three UK bases in Newcastle (a city which is snapping at the heels of Manchester as it grows to become a tech powerhouse). This means that moving to the North is not only cheaper, but can also help start-ups gain investment.Companies Hiring in the North
If you are interested in working in the North, there are some fantastic companies out there who are currently hiring now, such as:- Shop Direct: An online retailer based in Liverpool
- Hedgehog Lab: A global software company that specialises in multi-platform software, based in Newcastle upon Tyne
- BookingGo: An online ground transport booking company based in Manchester
- thebigword: A provider of translation, interpretation and language technology solutions based in Leeds
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