Business and VentureCreation in the UK 1. ContentsContents 02. Executive summary 03. 01. 04. Summary of activecompanies Annual incorporations Foreword 06. 07. 08. 05. Sectoral incorporationanalysis Regionalincorporation analysis Local authorityincorporation analysis Quarterly incorporations 12. 13. 14. 09. Sector spotlight Founding directorgender Sole director companies All-female foundingdirectors 16.About us 15. Methodology Foreword James Holian,Head of Business Bankingat NatWest Group In terms of the numbers, historically, the rate of newbusiness incorporations typically peaks in the firstquarter and gradually falls as the year progresses.This pattern continued in 2024, although the declineover subsequent quarters was more pronounced thanusual. This could be attributed to businesses facinggreater headwinds, but also to changes at CompaniesHouse designed to improve the accuracy and integrityof the register. What it does show is that there is stillmore to be done to give ambitious business owners theconfidence and tools to start and grow their businesses. It’s a testament to the resilience of the UK’s businessowners and their entrepreneurial spirit that at the endof 2024 the number of active companies operating inthe UK stood at a record high of 5.63 million. This reportby NatWest and Beauhurst shows that entrepreneursare still starting lots of new businesses, with 846,000new limited companies joining the UK’s corporateregister over the course of last year. the Accelerator shows that the programme plays animpactful role in giving start-ups the tools to scale andsucceed –significantly boosting businesses’ turnover,investment and chances of survival, with 75% of oursupport concentrated outside of London and theSouth East. To achieve sustained growth, we firmly believe thepublic and private sector must work together toenable businesses to maximise success, throughprogrammes like the Accelerator. With a record numberof active businesses now in the UK, we look forwardto continuing our collaboration with government andindustry partners to provide the local support neededfor regional economic growth –benefiting people andcommunities in every corner of the country. NatWest, as the UK’s biggest business bank, has a keyrole to play in unlocking business owners’ potential.Through our national network of relationship managersand our suite of top quality digital tools, we enable ourcustomers to access great business banking, and getthe support and guidance they need –no matter whatbusiness environment they find themselves in. This year we will celebrate the tenth anniversary ofthe NatWest Accelerator. Since we founded the firstNatWest accelerator in Birmingham back in 2015, ournetwork has grown to 12 hubs across the UK. Data from Executive summary In 2024, the UK witnessed a slight decline in therate of new business incorporations, totalling846k—a decrease of 3.75% from the previousyear’s high of 879k. Despite this downturn, the totalvolume of incorporations remained significantlyhigher than the three years preceding 2023. 5.63m due to a significant drop in Q4 incorporations,decreasing to levels last seen in 2021. Regionally, London continued to lead in businessformations with 286k new incorporations, thoughthis was a slight decline from 2023. In contrast,Northern Ireland demonstrated remarkable growthwith a 26.4% increase in new businesses. Otherregions, such as Wales, saw more significantreductions, with a year-on-year drop of 21.7% innew company formations. By the end of 2024, the number of activecompanies in the UK rose to a record 5.63m,marking a growth of 3.11% compared to the end of2023. The number of active companies has grownbetween 2023 and 2024, with incorporation ratesoutpacing dissolution rates. 846kcompanies incorporatedin 2024 Sector-wise, real estate-related activities showedthe largest increase in new incorporations, withsectors like “Other letting and operating of ownor leased real estate” and “Buying and sellingof own real estate” leading in growth rates. Thetechnology and professional services sectors alsoexhibited notable increases, reflecting the risingdemand for digital and professional expertise. The first quarter of 2024 saw the highest numberof company formations for any quarter in the pastfive years, peaking at 248k. This initial surge setthe rolling quarterly average to a record 229kincorporations per quarter. Despite a robust start,the end-of-year rolling average decreased to 200k 286kcompanies incorporated in Londonin 2024 Summary of active companies Despite a slight decline in businessformations in 2024, the overall numberof active companies in the UK saw asteady increase, closing the year at arecord high of 5.63m—a 3.11% rise from2023. Notably, incorporation activitywas particularly high in the first quarterof the year, with 248k new companies.However, this figure gradually declinedto 184k by Q4, indicating a 25.8%drop in new business form