New data showing a surge in start-ups in Birmingham shows entrepreneurs are taking the city seriously, according to business leaders.

Birmingham has retained its position as the most entrepreneurial UK city outside London, with more than 18,000 new businesses registered in the city last year.

Analysis of Companies House data shows that 18,337 new businesses were registered in Birmingham during 2014, more than any other city outside the capital, and far ahead of the third-placed Manchester, at 13,054.

Experts put the success down to the city centre enterprise zone and regeneration led by HS2, which saw the city also record a stronger rise than any other outside London, with 2,056 more start-ups.

Sue Summers, chief executive of Finance Birmingham, a city council-owned venture capital company which invests in small firms, said a culture of aspiration attracts entrepreneurs in.

She said: “Start-ups and small businesses are vital to the long-term health of our local and national economy. They employ the vast majority of our workforce, and some of these firms will become the global brands of the future. Birmingham has an innovative, aspiring business community that shares ideas, forms partnerships and ensures that local workers can develop their skills and experience without having to leave the city. By backing start-ups financially, we want to ensure that these firms stay in Birmingham as they continue to grow.”

It is the second year in a row that Birmingham has been named the UK’s most entrepreneurial region outside of London and a ‘start-up hotspot’.

Growing start-ups that are based in Birmingham include Whisk – a digital shopping list application that has just launched a spin-off website – and Hobzy, a social networking site for hobbyists that also runs a platform for users to sell their products. Synapse, which uses cloud computing to integrate spreadsheets, is now targeting a £25 million turnover and 60 staff in less than five years.

Neil Rami, chief executive of inward investment agency Marketing Birmingham, pointed out that the Greater Birmingham and Solihull LEP area also attracted more inward investment projects than any other English region last year.

Birmingham’s GVA also increased by six per cent between 2012 and 2013, more than any other UK core city.

Mr Rami said: “Birmingham’s ability to attract and retain the UK’s entrepreneurial talent has created a thriving ecosystem of start-ups, which is helping to drive its economic growth.

“Increasing numbers of ambitious new businesses are locating in Birmingham as the city enters a new period of transformation – with schemes ranging from Birmingham New Street’s redevelopment to the transformation of the Paradise Circus area and the impending construction of HS2. The city is within easy reach of London’s business hubs but, despite the levels of investment it is attracting, remains an affordable location for new businesses. With its burgeoning infrastructure, vibrant support networks and skilled graduates, Birmingham has created the ideal environment for businesses that want to operate in a dynamic, industrious city.”