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Posted: Wed 24th Jan 2024
2023 was yet another record year for company registrations in the UK, according to an analysis by Enterprise Nation.
The dramatic upwards trend is 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 new data published 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 35% of UK adults are thinking about starting a business this year. The StartUp Ambition report found that figure rose to 54% 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.
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