The Index shows that while the total number of new startups fell slightly by 3.75% from 2023, entrepreneurial activity remains significantly higher than pre-2023 levels, underscoring the UK economy’s post-pandemic recovery. 

With incorporation rates expected to stabilise in 2025, policy focus should shift to nurturing active businesses and supporting innovation in key sectors. Ulster Bank’s Accelerator programme remains therefore a key opportunity for startups and growing businesses seeking guidance and growth.

• Over 5.6 million businesses are now active in the UK, setting a new record

• 846,000 companies started in 2024, down 3% on 2023

• Fastest growing sectors include property businesses (+38%), takeaway shops and food stalls (+14%), and management consultancy firms (+11%).

• London maintained its lead with 286,000 new incorporations but saw a slight 3.75% drop from 2023

• With a total of 1.59m active businesses by year-end

• Conversely, Wales faced a 21.7% decline in startup formations.

Real estate led sectoral growth, driven by activities like property management and transactions. Other key sector stats include:

• Real estate: Buying and selling of own real estate rose by 38%

• E-commerce: Online retail remained dominant but saw a slight dip (-1.46%) in new incorporations

• Technology: IT consultancy activities grew 6.93%, reflecting sustained demand for digital solutions.

James Holian, Head of Business Banking at NatWest, said: “It’s a testament to the UK’s reputation as a nation of entrepreneurs that the number of active companies operating in the UK stands at a record high. But with the number of company incorporations falling slightly as 2024 progressed, there is still more to be done to give prospective entrepreneurs the confidence and tools to start a new business.

"At NatWest we are committed to nurturing these shoots of new business growth to attract jobs and investment to the UK. Our Accelerator programme plays a key role in giving start-ups the tools to scale and succeed – with data showing our support significantly boosts businesses’ turnover, investment and chances of survival.

“As we move into 2025, with the number of incorporations projected to fall from the exceptionally high numbers of the past few years, it’s vital that the public and private sectors work together to give young start-ups the support, guidance and tools they need to survive and grow, no matter what environment they might face.”

To find out how the Ulster Bank Accelerator’s expertise on funding, selling and leading could help your business grow visit our the Ulster Bank Entrepreneur Hub.