Starting a business is an exciting journey, but deciding where to set up shop can make all the difference. For many new entrepreneurs in the UK, the focus tends to lean toward big cities like London, Manchester, or Birmingham. However, tucked in the heart of Lancashire lies Preston, a city that’s quietly emerging as a smart and strategic choice for startups.
With its excellent connectivity, supportive infrastructure, skilled workforce, and relatively low business costs, Preston offers a powerful mix of opportunity and affordability. This blog explores in detail why Preston is fast becoming a destination of choice for the UK’s next generation of entrepreneurs.
Why Is Preston Considered a Strategic Business Location?
Preston’s geographical position is one of its greatest assets. Situated in North West England, it sits between major cities and transport networks, offering entrepreneurs direct access to both northern and southern markets.
It is located just off the M6 motorway, with excellent links to the M61 and M65, making road travel to Manchester, Liverpool, and Leeds straightforward. Rail connectivity is equally strong. Preston Railway Station is a central hub on the West Coast Main Line, providing fast services to London Euston in under 2.5 hours, and to Glasgow in a little over two hours.
This kind of logistical access allows businesses to move products quickly, meet clients in other cities with ease, and recruit talent from a broad area. Importantly, it also allows founders to tap into nearby regional economic centres without paying premium city-centre costs.
What Does the Local Economy Offer for Startups?
Preston has successfully transitioned from a predominantly industrial economy to a more diversified and knowledge-based one. Its economy now includes strong contributions from sectors like education, digital tech, manufacturing, and logistics.
Preston’s growth has been fuelled in part by investment in public-private partnerships, such as the City Deal, which is unlocking new opportunities for commercial and residential development. New entrepreneurs can take advantage of a business environment that supports innovation while still remaining accessible.
Economic Overview of Preston
| Metric | Value |
| Population (2024 estimate) | 145,000+ |
| Employment Rate | ~75% |
| Key Sectors | Education, Logistics, Retail |
| SME Growth (3 years) | +15% |
The strong presence of small and medium-sized enterprises suggests a business-friendly environment where new players can thrive alongside established ones.
How Affordable Is It to Start a Business in Preston?
Affordability is a major draw for entrepreneurs choosing Preston over bigger cities. Office space, housing, and daily business costs are significantly lower here, freeing up funds for investment in staffing, marketing, and development.
Cost Comparison Table
| Expense Category | Preston | Manchester | London |
| Office Rent (sq ft avg) | £12 – £18 | £22 – £32 | £50+ |
| 2-Bed Flat Rental (monthly) | £650 – £850 | £1,000 – £1,400 | £1,800+ |
| Day-to-Day Commuting | Low | Medium | High |
For new entrepreneurs with lean budgets, this can mean the difference between survival and sustainability in the first year. Whether it’s renting a small office, hiring a small team, or investing in product development, the reduced costs in Preston offer greater breathing room.
What Kinds of Support Are Available for Startups?
One of the strongest aspects of Preston’s startup landscape is the amount of support available for early-stage businesses. From government-backed schemes to university incubators, entrepreneurs have access to a range of tools that make launching a venture easier and more sustainable.
The Boost Lancashire Growth Hub offers business advice, mentoring, and access to funding. Local schemes administered by the Lancashire County Council provide grant opportunities for businesses in innovation, sustainability, and digital services.
UCLan (University of Central Lancashire) also operates the Propeller Hub, a dedicated startup incubator that helps student and graduate entrepreneurs turn ideas into scalable businesses. Its services include legal and accounting support, workshops, and co-working spaces.
Additionally, local co-working venues like Society1 and Fraser House Hub create professional, collaborative environments where startups can work flexibly while networking with other businesses.
How Strong Is the Local Talent Pool?
Attracting the right talent is one of the biggest challenges for any new business, but Preston makes it easier with its steady supply of young, skilled professionals. The presence of the University of Central Lancashire, one of the UK’s largest universities, plays a central role in shaping the local workforce.
Graduates from UCLan’s business, digital, engineering, and healthcare programmes often stay in the area, making Preston an ideal place for startups that require fresh, trained minds at affordable salaries. The university also has a strong reputation for connecting students with industry placements, which can benefit early-stage businesses looking for short-term or part-time help.
Beyond university education, vocational colleges and training centres in the region provide apprenticeship schemes and reskilling opportunities, ensuring that the workforce is not just educated, but also industry-ready.
What Role Does Infrastructure and Regeneration Play?
In recent years, Preston has received significant infrastructure investment as part of the Preston, South Ribble and Lancashire City Deal, a £430 million initiative. The goal is to unlock new housing, commercial space, and better transport connections, paving the way for business expansion.
Key Infrastructure Projects
City Centre Developments
Regeneration projects in the city centre are transforming retail and office spaces, creating more footfall for businesses and a better overall environment for investors.
Preston Station Masterplan
Plans to upgrade the station and the surrounding area will improve the travel experience and increase commercial value.
Stoneygate Regeneration
This £200 million project aims to bring new residential and mixed-use developments, potentially creating new customer bases for local startups.
These projects not only make the city more attractive aesthetically, but also more functional as a base for running and growing a business.
Does Preston Offer a Supportive Lifestyle for Entrepreneurs?
Lifestyle factors often get overlooked, but they matter deeply, especially for new founders. Entrepreneurs in Preston enjoy the benefits of a balanced and affordable lifestyle, which helps reduce stress and prevent burnout.
The city offers access to award-winning parks like Avenham and Miller Parks, peaceful riverside walks, and historic attractions like the Harris Museum. Its compact city centre means you’re never far from where you need to be, and commuting times are short.
The social side of Preston also thrives through community-led events, cultural festivals, and local markets, helping business owners feel connected and inspired. Unlike larger cities that may feel impersonal, Preston retains a strong sense of community, making it a genuinely pleasant place to live and work.
What Are the Emerging Sectors for New Entrepreneurs?
Certain industries are seeing above-average growth in Preston, making them prime areas for entrepreneurial activity. The combination of available talent, local demand, and infrastructure support has positioned several sectors as particularly promising.
Digital and Creative Media
Freelancers, agencies, and digital marketers find Preston appealing thanks to low setup costs and a growing client base in Lancashire.
Green and Sustainable Technologies
With a national push towards net-zero emissions and local government support for eco-initiatives, startups in renewable energy, recycling, and carbon reduction are thriving.
Professional Services
There is always demand for affordable legal, financial, HR, and consulting services, particularly from Preston’s growing SME community.
Food and Hospitality
New restaurants, cafés, and artisanal food businesses are popping up, thanks to a vibrant local food culture and a market that values community-rooted enterprises.
How Can Entrepreneurs Stay Updated on Local Business Trends?
Keeping up with the local scene is key for any entrepreneur looking to stay ahead of the curve. That’s where regional platforms like the Preston Blog become invaluable. The site regularly covers local news, startup features, grant announcements, networking events, and business policy updates.
These insights help entrepreneurs make informed decisions, identify collaboration opportunities, and understand how national economic trends are impacting the local ecosystem.
Final Thoughts: Is Preston the Right Place to Launch Your Business?
While it may not always be the first city that comes to mind, Preston is proving to be one of the UK’s most underrated gems for entrepreneurs. Its strategic location, growing economy, lower operational costs, and rich support network offer a compelling alternative to pricier startup cities.
Combined with a high quality of life and strong local identity, Preston isn’t just a smart choice, it’s a city where your business can grow with purpose.
Whether you’re launching a tech startup, opening a consultancy, or starting a creative agency, Preston provides the infrastructure, community, and energy to make your vision a success.
