Edinburgh has earned the reputation of being a top spot for startups in recent years. The capital of Scotland has a knack for blending historic charm with modern innovation, turning into a bustling business environment.
The University of Edinburgh offers world-class education, and several alumni have founded successful startups. The city is also steeped in culture as the hosts of the Edinburgh Festival Fringe, the largest arts festival in the world.
Arguably one of the most dynamic cities in the world to work and live in, entrepreneurs are immediately drawn in. With plenty of startup opportunities, here is an in-depth guide on how to launch yours there.
Why Choose Edinburgh For A Startup?
Edinburgh has consistently ranked as one of the UK’s most startup-friendly cities. According to StartupBlink, there are more than 600 startups in the city, accounting for 2% of all startups in the United Kingdom. Almost half of these are tech companies, securing Edinburgh as a top tech spot.
Edinburgh University, Heriot-Watt and Napier University are among the top academic institutions, producing highly-skilled graduates looking to make their mark.
The city is also known for its high quality of life that it offers to residents.
Edinburgh’s Most Successful Industries
Let’s take a look at some of the top industries in Edinburgh that are known to be particularly successful.
Technology and Artificial Intelligence (AI): Edinburgh is the UK’s second-largest tech hub, and was named the most AI-ready UK city in 2023. The popular travel agency, Skyscanner, was founded in the city and is now used by travellers internationally to find deals on flights, hotels and rental cars.
Finance and FinTech: Edinburgh has had a strong banking sector for decades, welcoming new and innovative FinTech startups.
Creative industries: The city has earned the status as a UNESCO City of Literature, and creativity is nurtured here.
Sustainability: The residents of Edinburgh emphasise the necessity of sustainability, and eco-friendly initiatives are always supported.
Accelerators And Incubators In Edinburgh
There are plenty of accelerators and incubators to support early-stage ventures. This can be through support, funding or co-working spaces, and these are just a few of them.
Converge Challenge: Directed at university-affiliated startups, Converse Challenge offers mentorship, training and financial support to startups.
CodeBase: This is the UK’s largest tech incubator, providing office space and access to the tech community.
Engage Invest Exploit (EIE): This flagship program assists startups by connecting them to relevant investors and offering guidance on refining their pitches before approaching investors.
SeedHaus: This startup accelerator specialises in tech companies, giving startups in this sector funding, guidance and an environment where they can connect with each other.
Funding Opportunities
Securing your financial support in your startup’s early-stage will play a critical role in its long-term success. Whether it’s through venture capital firms, grants or angels, here are some options you can choose from.
Business Angels: Companies, such as Archangels and Par Equity, specialise in investing in startups in their infancy stages.
Scottish Enterprise: They offer loans, equity investments and grants to startups across a range of industries.
Local grants: Most of the local councils often provide small business loans or grants to help startups with their initial financing.
How To Set Up A Business In Edinburgh
If you have settled on Edinburgh as the location for your startup, here is a step-by-step guide on how to get started.
Define Your Idea And Compile Your Business Plan
In this step, you will need to refine your concept. This can be done by conducting thorough market research in Edinburgh to test its viability.
After you have identified your unique selling point, you can put together your business plan. This will detail your financial projections, marketing strategies and the day-to-day operations of your startup.
Select A Business Structure And Register
Decide whether you want to operate as a sole trader, partnership or limited company. If you are setting up a limited company, you will need to register with Companies House.
For tax-compliance purposes, you can apply for a Unique Taxpayer Reference (UTR).
Open A Business Bank Account
This is required for you to separate your personal and business finances. Most banks will offer tailored business solutions depending on your requirements.
Apply For Additional Documentation
Depending on which sector you will be operating in, you may need additional permits or licenses.
Should You Start A Business In Edinburgh?
Edinburgh undoubtedly has the resources and opportunities to help your startup get off the ground. If you bring new and innovative ideas to the tech, AI or finance industries, their supportive communities can guide you from start to finish.
The key is to network as much as you can. This way, other startup founders can share their own experiences that can help you to navigate your own path.
Leveraging the support of the universities is also something to consider, as most of them do have startup programs or will support graduates.
