Preston is steadily strengthening its reputation as a place where businesses can establish themselves, recruit skilled people and pursue long-term growth. Once viewed mainly as an important Lancashire administrative and transport centre, the city is increasingly attracting attention for regeneration, business investment, education and emerging industries.
Preston is the largest and fastest-growing city in Lancashire and acts as an important economic centre for the county. More than 1 billion has been invested in the city over the last decade, while its economy generates approximately 4.5 billion in Gross Value Added each year. These figures help explain why entrepreneurs and investors are taking the city more seriously.
For startups in particular, Preston offers an interesting combination. Businesses can benefit from strong regional connections and access to talent without necessarily having to base themselves in a much larger city such as Manchester or Liverpool.
Why Is Preston Becoming More Attractive to Businesses?
One of Preston’s biggest advantages is that several elements required for business growth are developing at the same time. Transport infrastructure, city-centre regeneration, education, housing and commercial development are all contributing to the city’s changing business environment.
Preston City Council describes the city as Lancashire’s economic hub, highlighting its connectivity, access to talent and ongoing transformation as major reasons for investment.
The number of businesses also provides evidence of growing commercial activity. Lancashire County Council figures show that Preston had around 5,830 active enterprises in 2025, the highest number among Lancashire-12 districts. The number of enterprises in Preston increased by approximately 145, or 2.6%, compared with 2024.
| Business Factor | Why It Matters to Preston |
|---|---|
| Transport connectivity | Helps businesses reach major UK markets |
| Growing enterprise base | Creates suppliers, customers and partnerships |
| University presence | Provides graduates, research and skills |
| Regeneration | Improves commercial areas and investor confidence |
| Emerging sectors | Creates opportunities in technology and innovation |
| Regional location | Provides access across Lancashire and the North West |
Does Preston’s Location Give Businesses an Advantage?
Location is one of Preston’s strongest commercial assets.
The city has direct road and rail connections with Manchester, Liverpool, Birmingham and London. Preston railway station sits on the West Coast Main Line and is the busiest railway station in Lancashire. The city also supports Lancashire’s largest travel-to-work area.
This matters to both established businesses and startups. A company can recruit people from surrounding areas while maintaining access to major commercial centres elsewhere in the UK.
Entrepreneurs unfamiliar with Lancashire may initially ask Where Is Preston and why its location matters commercially. Preston sits at the heart of Lancashire with access to major motorway and rail networks, putting businesses within practical reach of several important North West markets.
Why Does Connectivity Matter to Startups?
A startup’s location can affect recruitment, meetings, supplier relationships and expansion opportunities.
Good transport connections can make it easier to meet investors and clients in other cities without requiring the company to relocate. Businesses serving Lancashire can also use Preston as a central operating base rather than spreading teams across several smaller locations.
This balance between regional accessibility and national connectivity gives Preston a practical advantage.
How Is Regeneration Supporting Preston’s Business Growth?
Preston’s appeal is also being strengthened by substantial regeneration.
The Preston and Lancashire City Deal represents 434 million of investment intended to improve transport infrastructure and unlock development. The programme was designed to support thousands of new jobs and homes while providing additional capacity for economic growth.
City-centre projects are also changing how Preston functions as a place to work, visit and invest.
The Station Quarter is expected to provide commercial development opportunities around a major transport hub, while investment in areas including the Harris Quarter, Friargate and Riversway is intended to improve the city’s business, cultural and public environment.
These changes can create opportunities beyond construction itself. More residents, workers and visitors can increase demand for hospitality, professional services, retail, technology, property services and other local businesses.
Does Preston Have the Talent Businesses Need?
Access to skilled employees is particularly important for businesses considering where to establish an office.
Preston benefits from the presence of the University of Lancashire and a wider network of colleges and training providers. The university contributes to the city’s skills base while bringing students, researchers and graduates into the local economy.
Investment in facilities including the Engineering Innovation Centre has also strengthened links between higher education, engineering, research and industry. Planning documents recognise the university as an important partner for both large and small businesses and as a contributor to a more innovative local economy.
Can Graduates Help Preston’s Startup Ecosystem?
A strong student and graduate population can be particularly useful for young companies.
Startups often need people with current digital, technical, marketing, engineering and creative skills. Being close to a university can make graduate recruitment, internships, research partnerships and knowledge exchange easier.
It can also encourage entrepreneurship itself. Some graduates may choose to create businesses locally rather than moving immediately to Manchester, London or another major city.
Which Business Sectors Could Grow in Preston?
Preston is not dependent on one type of business.
The wider Lancashire economy has established strengths in areas such as aerospace, advanced manufacturing, engineering and energy. At the same time, Preston is targeting future growth in cyber security, digital technology, research and innovation, life sciences, clean energy and the cultural economy.
Cyber security could become especially important. The development of the National Cyber Force headquarters at Samlesbury has the potential to encourage related investment, specialist skills and technology businesses across the wider Preston area.
For startups, growing industry clusters can be valuable because they create networks of customers, experienced employees, suppliers and potential collaborators.
How Does the Preston Model Support Local Businesses?
Another distinctive feature of Preston’s economy is its approach to Community Wealth Building, commonly known as the Preston Model.
The idea is to keep more economic value within the local area. Major institutions such as councils, healthcare organisations and educational bodies are encouraged to consider local procurement and strengthen regional supply chains where appropriate.
This approach can create opportunities for smaller companies because local businesses may have more chances to participate in supply networks rather than economic activity automatically flowing towards larger organisations elsewhere.
Preston City Council says the model aims to strengthen local supply chains, support businesses and secure investment within the local economy.
Is Preston Suitable for Small Businesses as Well as Large Investors?
Preston’s development is not solely about attracting major corporations.
In fact, the structure of Lancashire’s economy shows how important smaller enterprises remain. Around 88% of active businesses across Lancashire-12 in 2025 were micro-enterprises employing fewer than ten people.
This makes the surrounding business environment particularly relevant to freelancers, independent retailers, agencies, professional services companies, technology startups and small manufacturers.
A growing population and expanding city centre can also generate new demand for accountants, designers, marketing agencies, property businesses, tradespeople, restaurants, independent shops and many other services.
Could Preston Become a Stronger Northern Business Hub?
Preston is unlikely to replace Manchester or Liverpool as a major commercial centre, nor does it need to.
Its opportunity lies in establishing a distinctive position as a well-connected Lancashire business hub where companies can access talent, infrastructure and growing industries while remaining connected to larger North West markets.
The city’s long-term plans support this direction. Preston is continuing to pursue regeneration, improved transport, housing development and growth in high-value industries. Projects such as Cottam Parkway, the Station Quarter and wider city-centre improvements could further strengthen its attractiveness to employers and investors.
The combination of established industries and newer areas such as cyber security and digital innovation could be particularly important over the next decade.
Why Should Entrepreneurs Consider Preston?
Entrepreneurs choosing a location need to think beyond immediate office costs. They should consider where customers will come from, whether skilled workers are available, how easily other cities can be reached and whether the local economy is moving in a positive direction.
Preston performs increasingly well against several of these considerations.
Its position at the centre of Lancashire provides a substantial regional market. Transport connections make other major UK cities accessible, while the university supports a continuing skills pipeline. Regeneration is improving parts of the city and creating further commercial opportunities.
Most importantly, Preston appears to be developing rather than standing still.
Final Thoughts
Preston’s growing attraction to businesses and startups comes from a combination of location, connectivity, skills, investment and long-term regeneration.
The city already has Lancashire’s largest number of enterprises, while major infrastructure and development programmes are intended to support further economic activity. Its university, established industrial strengths and emerging technology sectors provide additional foundations for future growth.
For entrepreneurs, Preston offers something different from Britain’s biggest business centres: access to a growing regional economy with strong connections to larger markets.
As regeneration continues and industries such as cyber security, digital technology, engineering and research develop further, Preston could become an increasingly important location for businesses looking for their next stage of growth.