More businesses set up in West Midlands but South West sees a decline
More than 468,000 new firms have started up in the first half of 2024, according to the New Startup Index published by Beauhurst and supported by NatWest.
This brings the number of companies operating in the UK to 5.47 million, with new businesses primarily operating in wholesale, retail and professional services as of June 2024.
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 per cent and 8.15 per cent respectively.
However, South West and Wales were the only regions to report a decline in new company registrations. Despite this, the South West still 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.”
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.”
