Entrepreneurship has seen a notable rise this year. Between January and March 2024, the number of startups in the country rose by 22,649 compared with the same period in 2023 – an increase of 10.2%.
Which industries attract the most entrepreneurs?
The most appealing industry for UK entrepreneurs is ecommerce, with 71,252 companies started in the last 12 months – more than in any other sector.
It’s not just a fad though. Ecommerce-based startups have dominated over the last five years, with 142,603 businesses launched in the UK. It was also the fastest-growing sector in the UK over five years, with a percentage growth of 92.5%.
Property companies and business consultancy services were also among the top industries in the UK this year.
Our analysis shows which industries attract the most new business owners.
| Top UK industries | # of companies started |
|---|---|
| Ecommerce | 71,252 |
| Buying properties to resell | 34,196 |
| Business consulting | 30,385 |
| Buying properties to rent out | 30,381 |
| Other business support activities NEC – includes debt collection, event organisers and office admin | 23,700 |
| Information technology consultancy activities | 20,771 |
| Other service activities NEC – includes pet sitting and grooming services, tattooists, dating sites | 17,191 |
| Door-to-door sales and vending machines | 16,528 |
| Activities of other holding companies NEC | 14,794 |
Most popular industries for the last five years
| Top UK industries for five years | # of companies started |
|---|---|
| Ecommerce | 142,603 |
| Buying properties to resell | 124,482 |
| Buying properties to rent out | 115,710 |
| Business consulting | 102,097 |
| Other business support service activities NEC – includes debt collection, event organisers and office admin | 67,713 |
| Information technology consultancy activities | 59,903 |
| Other service activities NEC – includes pet sitting and grooming services, tattooists, dating sites | 59,667 |
| Activities of other holding companies NEC | 54,262 |
| Development of building projects | 51,682 |
Fastest-growing industries for the last five years
| Industry | % growth in the last five years |
|---|---|
| Ecommerce | 93% |
| Door-to-door sales and vending machines | 84% |
| Buying properties to resell | 59% |
| Activities of other holding companies NEC | 58% |
| Information technology consultancy activities | 58% |
| Other business support activities NEC – includes debt collection, event organisers and office admin | 56% |
| Buying properties to rent out | 54% |
| Business consulting | 50% |
| Other service activities NEC – includes pet sitting and grooming services, tattooists, dating sites | 41% |
Top industry across 10 cities
Unsurprisingly, most new businesses are concentrated in London, but which UK cities are dominated by specific industries?
London is the top UK city for new businesses, with 243,269 companies registered between June 2023 and June 2024.
Online retail dominated in most cities this year, with property and freight transport also appearing in the top 20.
The numbers in more detail:
| City | Top industry | # of companies started |
|---|---|---|
| London | Ecommerce | 29,158 |
| Birmingham | Ecommerce | 1,961 |
| Manchester | Ecommerce | 2,162 |
| Cardiff | Ecommerce | 1,873 |
| Glasgow | Ecommerce | 796 |
| Liverpool | Ecommerce | 399 |
| Leeds | Ecommerce | 427 |
| Leicester | Ecommerce | 538 |
| Belfast | Ecommerce | 2,115 |
| Nottingham | Ecommerce | 414 |
| Ilford | Ecommerce | 791 |
| Edinburgh | Ecommerce | 422 |
| Bradford | Ecommerce | 413 |
| Sheffield | Ecommerce | 335 |
| Coventry | Ecommerce | 286 |
| Luton | Ecommerce | 357 |
| Bolton | Ecommerce | 362 |
| Harrow | Buying properties to resell | 277 |
| Milton Keynes | Buying properties to resell | 201 |
| Northampton | Freight transport by road | 162 |
Top industry trends in the UK: Online retail leads the way
The growth of ecommerce businesses over time aligns with consumers increasingly shopping online for convenience and speed. More than 80% of UK consumers (four in five) are digital buyers, and the penetration of the ecom market in the UK continues to grow. The indicator is expected to reach a new peak of 97.25% by 2029. This means sales via online channels will continue to lead the nation’s top industries in the future.
Let’s look at the five biggest cities in the UK and what’s driving top industry trends:
London
Top industry for 2024: Ecommerce
Most popular industry over the last five years: Ecommerce
Why: London’s status as a global city and hub for technological advancements makes it a prime location for ecommerce and online retail enterprises. The dense population, higher internet penetration rate, and broad international consumer base boost this industry.
Birmingham
Top industry for 2024: Ecommerce
Most popular industry over the last five years: Ecommerce
Why: Birmingham, the UK’s second-largest city, has seen significant investments in digital infrastructure and education. Its central location also benefits distribution and fulfilment centres, enhancing ecommerce operations.
Liverpool
Top industry for 2024: Ecommerce
Why: Liverpool’s regeneration and port status allows for streamlined logistics for online retailers. Additionally, the city’s increasing digital connectivity and skills drive the growth of online retail.
Most popular industry over the last five years: Buying properties to resell
Why: Liverpool’s waterfront development projects, coupled with the allure of its rich cultural heritage, have made it a target for property investors, both domestic and international
Nottingham
Top industry for 2024: Ecommerce
Why: Nottingham has a strong digital content sector, and investments have been made in the city’s digital infrastructure over the years as part of the Nottingham Growth Plan. The large student population also means there’s a strong demand for online retail options.
Most popular industry over the last five years: Buying properties to resell
Why: Nottingham has a strong demand for residential and commercial property.
Sheffield
Top industry for 2024: Ecommerce
Why: Sheffield is a digitally well-connected city and home to a large student population, which means there’s a big demand for local online shopping.
Most popular industry over the last five years: Buying properties to rent out
Why: with its blend of industrial history and modern development, Sheffield has witnessed steady demand in the leasing market. Its multiple educational institutions also ensure a steady stream of potential tenants.
If you’re a UK entrepreneur trying to break into one of the country’s most competitive sectors, rest assured you can find the ideal home for your business with Instant’s flexible office leases.
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