A study found that Lincoln is the UK’s number one hotspot for business growth, with 100 new firms starting up in the city in the past six months.
The Royal Mail study found a 2% increase in the number of companies trading in Lincoln over the past months, now totalling 8,000.
Lincoln topped Swansea in the business growth league, followed by Sunderland and Durham, according to the report.
The North East had four of the top 10 cities attracting new businesses, suggesting a switch from public sector employment to new firms.
Stephen Agar of Royal Mail said: “It is encouraging to see how certain areas are experiencing focused and localised growth.
“We expect this trend to become even more evident over the coming months as businesses new to an area start to use the services of local suppliers.”