Smaller towns are producing more entrepreneurs per head than larger cities, according to research conducted by O2.

The study names Leicester, Preston, Ipswich and Tonbridge as the nation's small business hotspots, with Peterborough, Chelmsford, Oxford, Gloucester, Chester and Newcastle-upon-Tyne making up the top 10.

"We have seen that some of the UK's smaller cities are providing the perfect conditions for small businesses to prosper," said Simon Devonshire, head of SME marketing at O2.

The research was commissioned to mark the start of the 2008 O2 X Awards for small businesses making an impact in an increasing competitive marketplace. For more information on how to enter visit www.o2blueroom.co.uk/O2XAwards [1]