Paris was named the best city for start-up businesses, closely followed by Madrid and Barcelona, in a new report from UK-based training company The Knowledge Academy.

The various cities in this ranking earned their scores on a scale of 0-10 judged by the number of available office spaces, rental prices, proximity of top universities, the speed of internet (Mbps) among others. However, the report didn’t consider regulatory background, bureaucracy or taxation.

Are France and Spain the best places for start-ups?

France did very well in this ranking, with two cities in the top five, while Spain dominates the top three places with two cities. London ranks in fourth place.

Paris, home to some of Europe’s best universities and office environments, has “support from governments and a well-developed start-up ecosystem,” according to the report. 

Lyon, the third biggest city in the country and also a great hub of universities, ranked the fifth best place to start a business, supported by one of the fastest internet speeds in Europe.

Madrid, Spain’s capital city, earned a high ranking because of its speedy internet and number of available offices. The other Spanish city among the top three, Barcelona, has built its reputation over the last ten years as the largest tech hub in southern Europe.

London, being a financial hub with other advantages, has the largest concentration of business incubators, while boasting the highest number of universities in the Top 250 in Europe and abundant office spaces (if you can afford them). 

The UK capital has the most offices as well as the highest rents, while the internet is fastest in Lyon, the public transport is most accessible in Paris, and the highest average university score is available in Manchester, UK, according to the report. 

Selecting the right location is essential, “you need to consider your surroundings as a key factor in its success,” Talveer Sandhu at The Knowledge Academy, said.

“Having a headquarters or communal work space for your team can be essential in building camaraderie, teamwork, and success. Broadband speed and reliability is another crucial factor in the running of a business, with website and social media monitoring crucial in the initial stages of building a business and brand awareness.”