The seaside business boom: How Britain's coastal towns have become hotspots for entrepreneurs

Britain's seaside towns are enjoying an unexpected business boom, with a new generation of entrepreneurs setting up shop on the coast to cash in on growing demand.

This year's heatwave and renewed appetite for holidays closer to home have helped Redcar in North Yorkshire become Britain's most entrepreneurial seaside town, according to research by website hosting company GoDaddy. 

The number of microbusinesses, defined as those which have fewer than ten employees, has jumped 21 per cent in two years.

In Redcar, known for its sandy beaches and historic piers, the hot weather has brought more visitors earlier in the season and helped keep trade strong in September.

Emma Stephenson bought Daisy-Mae's Vintage Tea Room three and a half years ago, having previously worked for its former owners.

'This summer has been really good for the business,' she said. 'The hot weather meant the season started earlier, bringing visitors from across the UK and all over the world. Even September has been busier than in previous years.'

But the tea room is not solely reliant on holidaymakers.

Business hub: Redcar has been crowned Britain's most entrepreneurial seaside town 

'Redcar is a really nice town with a great community. We have lots of support from local regulars, which means we can remain open throughout the year,' Stephenson said.

She has also seen new businesses opening alongside regeneration work and investment in the town.

'It's really positive to see more independent businesses emerging,' she added.

Microbusiness density rose by an average of 18 per cent in the ten fastest-growing coastal constituencies in Britain in the last two years, GoDaddy's research found.

That was more than double the national growth rate of 8 per cent.

Formby in Merseyside also saw microbusiness density rise by 21 per cent, while Troon in Central Ayrshire recorded growth of 19 per cent.  

The seaside economy is best-known for seasonal businesses such as fish and chips and ice cream shops, but that is starting to change.

The figures show 7 per cent of small UK hospitality businesses – including cafés, pubs, restaurants and B&Bs – were launched in 2026 alone, while 11 per cent have been established since the beginning of 2025.

And entrepreneurs are not necessarily driven by the prospect of making more money.

One in five hospitality business owners surveyed by GoDaddy said their main reason for starting a business was to be their own boss. That compares with just 11 per cent who said they did it because they believed they could earn more money.

Flexibility, pursuing a passion and having fun also featured among the leading motivations.

Alexandra Rosen, small business economist at GoDaddy, said the growth was particularly striking because it suggested coastal communities were attracting new businesses rather than simply benefiting from a good tourist season.

'We're not simply seeing long-established seaside businesses benefiting from a good summer, but growing evidence of a new generation of entrepreneurs choosing coastal communities as places to start and build businesses,' she said.

For some business owners, the attraction is as much about lifestyle.

'While people often assume the decision is primarily financial, our data suggests independence is a far more powerful motivation,' Rosen said.

'Seaside towns undoubtedly benefit from tourism, but for many founders they also offer an attractive lifestyle, strong community connections and the opportunity to build something of their own.'

A GoDaddy survey of 2,000 adults found that 44 per cent had visited a UK seaside town during the summer heatwaves.

More than half said they had spent more time at the seaside than in previous summers.

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