Six-thousand, four-hundred businesses were started up in Leicester in 2020, according to data insight firm SHL.
The company looked at information from Companies House and found that there had been a 27% increase in new businesses in the city compared to 2019.
Leicester beat London (22%) and Birmingham (21%) with regards to growth.
Overall in the UK, 2020 is set to be the best year on record for new business creation in the UK with an estimated 84,758 extra business created than in 2019.
Sectors with the most gains include: