Entrepreneurship has seen a notable rise this year. In the first month of 2023, 79,461 businesses launched in the UK, a 28% increase from the year before.
To find out which industries dominate in each city, we analysed Companies House data to reveal the top UK business hubs for 2023.
Which industries have the most new startups?
When it comes to entrepreneurship and new businesses launched, ecommerce startups dominate this year, with 9,047 new companies started in 2023 so far.
Looking at a longer five-year trend, property businesses are most popular, with 52,338 property-related companies launched in the UK.
With a significant rise in the number of UK entrepreneurs between 2022 and 2023, our analysis shows which industries attract the most new business owners.
Most popular industries in 2023
Top industries in 2023 | # of Companies started | |
---|---|---|
1 | Ecommerce | 9,047 |
2 | Buying properties to resell | 8,343 |
3 | Buying properties to rent out | 7,497 |
4 | Business consulting | 6,262 |
5 | Freight transport by road | 5,175 |
6 | Other service activities N.E.C – includes pet sitting and grooming services, tattooists, dating sites | 4,414 |
7 | Door-to-door sales and vending machines | 4,107 |
8 | Software and IT companies | 4,014 |
9 | Other business support service activities – includes debt collection, event organisers and office admin | 3,938 |
Most popular industries for the last five years
Top industry for the last five years | # of Companies started | |
---|---|---|
1 | Buying properties to resell | 52,338 |
2 | Buying properties to rent out | 49,148 |
3 | Business consulting | 33,790 |
4 | Ecommerce | 32,069 |
5 | Other service activities N.E.C – includes pet sitting and grooming services, tattooists, dating sites | 22,267 |
6 | Other business support service activities – includes debt collection, event organisers and office admin | 21,866 |
7 | Freight transport by road | 19,018 |
8 | Resi and commercial property development | 19,011 |
9 | Software and IT companies | 18,444 |
Most entrepreneurial industries in each UK city
Unsurprisingly, most new businesses are concentrated in London, but which UK cities are dominated by specific industries?
London leads the way as the top UK city for new businesses, with 244,331 companies registered in the past 15 months.
Online retail dominates this year, while buying and selling real estate has been the most popular industry for entrepreneurs over the past five years. Both these trends reflect the growth these industries have seen on a national level, too.
Freight transport by road was the biggest industry in 2 of the top 5 cities; on a national level, it has gone from the 7th to the 5th biggest UK industry in the last five years.
Most popular industries in the country’s largest cities
Largest UK Cities | Top Industry for 2023 | Top Industry for the last 5 years | |
---|---|---|---|
1 | London | Ecommerce | Buying properties to resell |
2 | Birmingham | Ecommerce | Buying properties to resell |
3 | Liverpool | Ecommerce | Buying properties to resell |
4 | Nottingham | Freight transport by road | Buying properties to rent out |
5 | Sheffield | Freight transport by road | Buying properties to rent out |
Top industry trends in the UK: Online retail leads the way
Ecommerce businesses may have slowed down this year compared to last, with a -37% YoY decline, but the industry has grown by almost +40% in the last five years.
The upward trend over time aligns with consumers increasingly shopping online for convenience and speed, while the rise in online retail deliveries suggests a growing need for road freight businesses.
More than 80% of UK consumers 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 86.34% by 2027. This means sales via online channels will continue to lead the nation’s top industries in the future.
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London
Thriving industry in 2023: Ecommerce
Why: London’s status as a global city and hub for technological advancements makes it a prime location for e-commerce and online retail enterprises. The dense population, higher internet penetration rate, and broad international consumer base boost this industry.
Most popular industry over the last five years: Buying properties to resell
Why: London has traditionally been a hotspot for real estate due to its financial and cultural global hub appeal. Foreign investments, coupled with the city’s limited space and high demand, had led to a booming real estate market.
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Birmingham
Thriving industry in 2023: 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 e-commerce operations.
Most popular industry over the last five years: Buying properties to resell
Why: Birmingham’s urban regeneration projects and infrastructural developments have attracted investors. The comparatively lower prices than London and the growth potential made the city’s real estate market buoyant.
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Liverpool
Thriving industry in 2023: Ecommerce
Why: Liverpool’s regeneration and port status allow 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.
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Nottingham
Thriving industry in 2023: Freight transport by road
Why: Nottingham’s central location in the UK provides optimal access to major highways and destinations. This strategic position has allowed it to flourish as a hub for road transport and logistics.
Most popular industry over the last five years: Buying properties to rent out
Why: With a strong student population due to its prominent universities and a growing business sector, Nottingham has seen a consistent demand for leased properties, both residential and commercial.
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Sheffield
Thriving industry in 2023: Freight transport by road
Why: Sheffield’s proximity to key motorways and its position in relation to major Northern cities makes it a logistical nexus. Moreover, the city’s history in manufacturing means there’s a legacy of transporting goods.
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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