UK enjoys another record year for new company start-ups, an analysis finds

2023 was yet another record year for company registrations in the UK, according to an analysis by small business support platform and membership community Enterprise Nation.

The company said the dramatic upwards trend was an indicator of the UK's growing entrepreneurial ambition, despite a reported spike in company insolvencies in the second quarter of the year and an incredibly challenging economic environment.

According to data published this week by the Office for National Statistics (ONS), the annual number of companies registered here on a yearly basis is pushing ever closer to one million. Figures just out show 859,007 companies were registered in Companies House in 2023 an increase of just under 75,000 on 2022 (784,762) which was in turn 30,000 higher than in 2021.

The increase in interest in entrepreneurial activity was also confirmed earlier this month following an Enterprise Nation report which found that 35 per cent of UK adults are thinking about starting a business this year. The Start Up Ambition report found that the figure rose to 54 per cent amongst Gen Z.

Emma Jones, CBE, founder of Enterprise Nation, said:

"Despite 2023 being a choppy year for the economy, with many businesses struggling with inflation, rocketing energy bills, skills and labour shortages, the nation has not been deterred from starting a business.

"We are moving towards a point where most of us will have our own money-making enterprise, a side hustle and/or a period of self-employment in what will be a long and so-called 'squiggly' career.

"Today's Gen Z will be working to until they are 70+, so they crave and have deep respect for the flexibility that starting a business can bring, as well as the financial independence and creative outlet entrepreneurship can deliver."

Eleven years ago, in 2013 the UK hit the milestone of 500,000 registrations in a single year for the first time, it has now exceeded 800,000, an increase of 60 per cent.

There are currently 5.6m businesses in the UK.

Emma added:

"Encouraging a fresh pipeline of innovation and talented entrepreneurs is vital for the future of our economy. New businesses are now starting out with fundamental sustainable and energy-saving principles -- this is partly due to rising costs, but also because many entrepreneurs are motivated to build a business to support others in their community or peer group.

"As we have seen, many will need business support to make sure they get the best possible start. Most people starting-up have a deep understanding of their field -- but they might not be great at actually running a business."

Enterprise Nation runs business support programmes in collaboration with partners including StartUp UK -- a free support and e-learning initiative with Monzo Business and business.connected - digital support in collaboration with Vodafone Business, JP Morgan Chase & Co and Builder.ai.

To become a free member of Enterprise Nation, go to enterprisenation.com/join

ENDS

About Enterprise Nation

Enterprise Nation is a business support platform and membership community which is on track to deliver support to 850,000 small businesses in the UK and Ireland in 2024. Its aim is to help people turn their good ideas into great businesses -- through expert advice, events, acceleration support and networking.

Enterprise Nation was founded in 2005 by British entrepreneur Emma Jones CBE, also co-founder of national enterprise campaign StartUp Britain.

www.enterprisenation.com