The research comes from Informi, a website offering free practical advice and support for small businesses, and studied information from 65 UK cities on a number of factors including the density of SMEs in the area, the quality of digital connectivity and house prices.
Leeds was named in the top ten because it has a good number of business start-ups in the area, a good level of high growth SMEs, and a relatively low level of SME closures.
Brighton came top of the list due predominantly to its superfast broadband penetration rate, low pollution levels and high number of business start-ups. Other cities in the top ten include Cambridge, Bristol, Northampton and Aberdeen.
Darren Nicholls, product manager for Informi said: “We are on course to see a record number of start-ups in the UK during 2016, demonstrating that the entrepreneurial spirit is as strong as it has ever been. New businesses can be found across every region and industry, bringing new jobs and prosperity and growth to their local economies.
“It is encouraging to see that London is not the only environment where small businesses have the opportunity to thrive. However, for every success story there are still far too many that struggle to get off the ground.
"SME owners should ensure they take every opportunity to seek out information and support that will help them get the fundamental ingredients of business in place to give their firm every chance of prospering.”
The full list is as follows: