UK Sees Surge Record Number of New Startups in Year

19 Feb, 2024

UK Sees Surge Record Number of New Startups in Year

The New Startup Index from NatWest and Beauhurst unveils a remarkable surge in entrepreneurship, with over 900,000 new companies incorporated in the UK in 2023, marking a historic milestone in business inception.

This startup boom has propelled the number of active companies in the UK to 5.31 million, reaching an unprecedented high. Despite facing economic challenges like heightened inflation and increased operational costs, the entrepreneurial landscape continues to flourish, indicating sustained growth in the UK's population of entrepreneurs.

In the past year, the exponential growth was notably driven by new online retailers, witnessing the establishment of over 82,000 businesses in this sector. Additionally, 49,000 enterprises emerged in the property letting space, while 21,000 new takeaway and street food stands were established, contributing to the diversification of the market.

Conversely, sectors such as packaging, passenger rail, and logistics warehousing displayed a slower rate of growth in new incorporations.

Across different regions of the UK, Northern Ireland experienced the most significant surge in startups, recording a 59% increase compared to the previous year. London and Scotland followed with 20% and 11% increases, respectively.

Moreover, the growth of female-founded businesses continues to escalate, with a record 164,000 companies incorporated by women in 2023, reflecting a 4% increase from the previous year and a 26% growth over the five-year period from 2019 to 2023.

James Holian, Head of Business Banking at NatWest Group, expressed pride in the resilience and dynamism of the UK's business landscape, emphasizing the crucial role of small businesses in driving economic growth.

NatWest's commitment to fostering entrepreneurial success is evident through initiatives like the NatWest Accelerator, which has supported over 1,300 scale-up leaders in the past year, with a focus on diversity and inclusivity.

Henry Whorwood, Managing Director of Research and Consultancy at Beauhurst, highlighted the robustness of the UK's entrepreneurial ecosystem, underscoring the nation's track record in supporting new businesses to thrive.

Beauhurst data serves as the foundation for this report, derived from official public records from Companies House covering new company incorporations in the UK from 2019 to 2023.