Spain has topped the rankings on SumUp’s Small Business Index, with Valencia, Madrid and Barcelona placing first, second and fifth respectively.

As SumUp’s report reveals, the Index shares which European cities offer the best business environment. Small businesses majorly impact the economy – both local and European. They boost healthy competition and connect rural and urban areas, while also boasting the advantage of being able to keep up with trends more than larger businesses. Larger and older businesses are often less flexible to keep up with the ever-changing business landscape.

Marc Alexander Christ, Co-Founder of SumUp, said: “As ambitious minds tire of inefficient bureaucracies and hierarchies, they’re investing in their own ventures that are agile, adaptable, and customer-focused."

SumUp revealed that in order to form the report, the following four key categories were taken into consideration:

•    Small Businesses - the type and total number of small businesses per city
•    Density - the number of small businesses per capita and km²
•    Rent and Real Estate - the retail area provision and the cost of rent
•    External Support - financial measures and subsidies supporting small businesses

A total of 100 major European cities were taken into consideration, including all capitals.

The small businesses researched include shops, cafes and bars, restaurants, beauty, taxi services and handyman businesses.

The two other non-Spanish cities forming part of the top 5 were Vienna and Berlin, ranking in third and fourth place respectively. Warsaw, Essen, Athens, Prague and Birmingham each placed in the top 10 cities.