This rise in new start-ups coincides with new analysis by Beauhurst which demonstrates that NatWest Group’s free accelerator programme is giving UK businesses the boost they need when forging their path to growth. 

Investment is one of the key areas that new businesses target when looking to grow and this increased by 70.5% on average over a three year period for accelerator businesses.

This was 47% higher than a control group of similar business. NatWest Group’s Accelerator businesses were also boosted by a higher average turnover growth of 49% - 29.5% higher than other similar businesses. 

This start-up boom brings the number of companies currently operating in the UK to 5.47m, with new businesses primarily operating in wholesale, retail and professional services.

The UK has experienced a significant uplift in new businesses in recent years, with numbers growing from 173,000 in the first quarter of 2020 to 248,000 in the first quarter of 2024—marking a 43.4% increase.

Survival can be a challenge though, only half of start-ups typically survive the first three years in business. Yet 9 out of 10 businesses on the NatWest Group’s Accelerator programme are still trading three years later.

• Across the UK regions, London led the way in the first half of 2024 with 161,000 new business incorporations, the highest across all regions.
• The regions of the West Midlands and Yorkshire and The Humber also experienced notable growth rates of 10.1% and 8.15%, respectively.
• Wales and the South West were the only regions to report a year-on-year decline in new company registrations, with decreases of 9.99% and 0.85%..
• Despite these declines, Wales still registered 17,900 new businesses, while the South West reported 23,000 new businesses in the first half of the year.

Paul Thwaite, NatWest Group CEO, said: “The UK’s potential for growth is made clear by the numbers of people now starting their own businesses. Small businesses are the lifeblood of our economy, accounting for three-fifths of employment and about half of the private sector’s turnover. If these new businesses are given the right conditions to succeed, they could significantly boost the UK economy.

“Across the UK, NatWest Group is helping more businesses get started than any other bank. We play a key role in giving start-ups the tools to scale and succeed – with data from our accelerator showing our support significantly boosts businesses’ turnover, investment and chances of survival.

“This September we are taking our commitment to small businesses up a level by over doubling the amount of free places on our Accelerator programme, to 2,500 businesses. We are creating the environment where businesses have the support, guidance and conditions they need to thrive – because when small businesses succeed, the UK succeeds.”

Business and Trade Secretary Jonathan Reynolds said: “Our mission is to bring economic growth and make the UK the best place to start-up and scale-up business. However, we can only achieve this by working in partnership with the private sector.

“That is why it’s good to see accelerator schemes like this play a positive role in giving businesses the boost they need to invest and grow, and it’s exciting to see these figures show signs of optimism for our start-up sector.”

Henry Whorwood, Managing Director at Beauhurst, said: “Certain aspects of the economy are firing on all cylinders. UK entrepreneurs are still starting lots of new businesses.

“This may mark the beginning of a new normal with higher rates of entrepreneurship in the UK economy than known previously.”

For more information on how our Accelerator programme could help you start and grow your business, visit our Entrepreneur Hub