The highest proportion of businesses outside the capital were found in Brighton and Hove, according to new research released today.

Brighton and Hove had more companies per 10,000 of its population than any other bar London, the Centre for Cities Outlook 2015 report found.

It also had the second most highly-qualified population, with just 5.1% having no formal qualifications.

A wealth of talent and ideas were credited with making the city one of the most successful in the UK, according to business leaders.

Job growth was the fourth highest in the UK, behind Cambridge, Milton Keynes and London, with more than 11,000 jobs between 2003 and 2014.

This represents an increase of more than 10% – more than double the national average, while the number of private sector jobs grew by more than 13%.

It is a city that is home to a hub of entrepreneurs, with the fourth highest rate for business start-ups.

More than three quarters of people living in Brighton were employed, ranking it in the top ten for employment rates.

Manufacturing jobs were at a low, whereas knowledge intensive service jobs ranked in the top ten nationally.

Connectivity was strong, with the reach of superfast broadband second in the country behind Luton.

But the city dropped into the bottom ten with low growth in the building of new homes. And on house price rises Brighton was in the upper echelons.

Between 2013 and 2014 prices grew faster than London and second only to Cambridge.

Price-wise Brighton is the fifth most expensive city with the ratio of house prices to income standing at 12.2 times more than the average wage.

When asked why Brighton had become one of the best and most successful cities in the country, Tony Mernagh, executive director of the Brighton and Hove Economic Partnership, said: “Two words really – talent and ideas.

“This is the city that puts ideas into orbit because it has the talent, ambition and drive to get them there.

“The fourth best educated workforce in the country and a collaborative, can-do attitude is a killer combination that most places would kill for.”

This is backed up by the figures, with 44.1% of Brighton’s residents achieving a higher level qualification and only five per cent without any qualifications, ranking second overall.

Phil Jones, managing director of digital hub Wired Sussex said: “There’s a number of different ways that the city’s economic success manifests itself – the continuing strength of the universities, the visitor economy and of course the creative and digital sector are all important factors.

“But there is one reason which underpins all those and that’s the place itself.

“Brighton’s natural advantages are matched by a can-do, can-try attitude from its residents which encourages others to visit, students to come and to stay and inspires talent to move here and start or join new businesses.

“It’s probably too indefinable for economists, but it’s the spirit of our city which underpins its business growth.”

Paul Doleman, chief executive of global digital marketing agency iCrossing attributes the majority of Brighton’s success to the digital and service sector.

He said: “The sector is the major force behind Brighton’s continued growth and is underpinned by partnerships between established and start-up private businesses alongside colleges and universities sensitive to the skills needed for tomorrow and government support.

“Digital, media and technology champions like Phil Jones and Wired Sussex have been incredible in securing government funding to support start-ups, introduce collaborative low cost work spaces and superfast broadband for the city.

“Established, high growth, digital businesses like iCrossing embrace internship and apprentice programmes and make our facilities and space available to the wider community.

“I feel the culture of Brighton encourages free and creative thinking. The city’s smallish size compared to London, Manchester and Birmingham means there is often more agility when getting stuff done.”

The digital sector being the major force behind Brighton’s success was a view shared by Joel Windels, marketing manager at Brandwatch, a major city employer with offices around the world.

He said: “With access to two great universities, hundreds of start-up resources and a quick route to London, digital companies in Brighton have grown more than ten times the national average in recent years, and it is now well known internationally for its expertise, investment and healthy jobs market.

“There’s no doubt that this innovative, exciting space helps drive much of what makes Brighton’s economy so successful, and we’re proud to be a healthy part of that success.”

As well as the wildly successful digital and technology sectors, the city is home to innovative businesses finding success in traditional industries such as groceries.

Amy Anslow, co-founder of ethical supermarket hiSbe, said: “There seems to be a lot more innovation and more independent businesses in Brighton compared to the rest of the country.

“I think there is a general feeling of possibility in the city and people can make things happen.

“There’s a support network here and a supportive infrastructure for new businesses.”

Councillor Geoffrey Bowden, chairman of the city council’s economic development and culture committee, highlighted the city’s entrepreneurial spirit as a factor in its success.

He said: “We have one of the most highly educated workforces in the country and there is a strong entrepreneurial spirit in the city – the latest new start-up figures demonstrate this graphically.

“The council’s principle role is to act as a facilitator and to work in partnership with local employers and groups to support them flourish.

“We have been successful in leveraging investment to the city and the wider economic area via the city deal and other pots of money, but above all the council have shown the will to drive forward a raft of major developments in the city, which will ensure its economic prosperity for years to come.”

Ron Crank, chief executive of Coast to Capital LEP, said: “Good news – these statistics confirm that the economic recovery has taken hold in our region. “They demonstrate the confidence that many of our business people have been expressing to me during the past three months. “However, there’s much to be done to ensure growth is sustainable in our hotspots, including Brighton, in relation to housing, infrastructure and skills. “Coast to Capital is focusing on these issues to ensure sustainability in the longer term that will benefit the whole region.”

Brighton and Hove

  •  2nd highest business stock per 10,000 population.
  •  7th lowest CO2 emissions per capita.
  •  4th highest for business start-ups.
  •  4th for job creation proportionally.
  •  3rd for private sector job creation proportionally.
  •  2nd lowest percentage of people with no formal qualifications. 
  •  2nd highest in house prices. 
  •  10th lowest for housing stock.