Over 90 new businesses were created every hour across UK in first half of 2022

5

min read

Over 90 new businesses were created every hour across UK in first half of 2022

red wedge
grey wedge
yellow dot
grey line with green square
blue square
  • Analysis of Companies House data reveals that more than 402,000 businesses were registered in the UK between January and June 2022, an increase of 18% from 2021.
  • iwoca’s Small Business HotSpots UK 2022 list shows that London saw the highest business creation rate per capita across the regions with 1,587 new businesses per 100,000, followed by the West Midlands (571).
  • Scotland came at the bottom of the list with only 338 businesses created per 100,00, with the North East in second to last place with 345.
  • The second yearly index reveals that Camden saw the largest number of businesses registered per 100,000 people out of all UK local authorities with 10,204 businesses, with the top 10 LAs all located in London.
  • The rise in new businesses reflects the increase in the number of UK workers choosing to move jobs this year.

Despite rising economic concerns, 93 new businesses were created every hour across the UK in the first half of 2022, according to research by iwoca - one of Europe’s largest small business lenders.

Analysis of Companies House data reveals that over 402,000 businesses were registered in the UK between January and June 2022, an increase of 18% from 340,500 over the same time period in 2021.

London and West Midlands top list of areas to start a business

{{flexi-loan="/components"}}

iwoca’s Small Business HotSpots UK 2022 reveals that London saw the highest rate of business creation in the first half of this year with 1,587 businesses being created per 100,000 people. This was followed by the West Midlands (571) and North West (554). Scotland appeared bottom of the list with a rate of 338 new businesses per 100,000, with the North East in second last place with 345.

When looking at how this changed between the first half of 2021 and 2022, Yorkshire and Humber saw the highest percentage increase in the rate of new businesses per capita created compared to 2021, with a 41% rise. This was followed by the East Midlands and Wales which both saw a 24% uplift over the same time period. You can see our Small Business Hotspots 2021 results here.

Camden tops the list of LAs as London dominates top 10

Camden saw the highest total number of businesses registered per 100,000 out of all UK local authorities, with 10,204 new companies. The second largest number of firms per capita were registered in Hackney (6,396) followed by 5,542 in Westminster. London’s local authorities make up all of the top 10. The analysis reveals that Manchester is the highest local authority outside of London, with 1,165 businesses created per 100,000, followed by Luton at 990.

The analysis also revealed significant proportional growth in the number of businesses outside of the main cities. Compared to the same time period last year, the Isle of Wight saw the highest percentage increase in the rate of new businesses created in any local authority with a 125% increase, followed by Blackpool (98%) and Oldham (87%).

Increase in new small businesses follows record high of job moves

The rise in new businesses sits alongside an increase in the number of workers seen moving jobs this year. Total job to job moves within the UK increased to a record high of 997,000 during the first quarter. ONS data records that a large proportion of these moves were driven by resignations - far more than redundancies - suggesting that some workers may be proactively deciding to quit their jobs and set up new businesses.

Seema Desai, iwoca’s Chief Operating Officer said: “Despite the prevailing headwinds of an impending recession, we are encouraged to see that so many businesses have been created during the first half of this year.  

“As many of these businesses struggle with cash flow in the coming months due to skyrocketing business costs, it is vital that lenders step in to provide a helping hand. We are proud to do our part at iwoca, adapting to the needs of small businesses. We do this mainly by deploying the latest embedded technology so that SMEs across the country can access our finance through the services they already use day-to -day.”

Cassie Ryan, owner of Birmingham based NOIR Footwear, said: “I have always dreamed of setting up my own footwear brand, and during the pandemic I decided to bite the bullet and actually do it. As a single parent on furlough, I enjoyed the extra time I was able to spend with my daughter, and realised that I wanted the flexibility not only to chase my dreams, but to also achieve a better work life balance.

“It's been an incredible 12 months. I have enjoyed some successes whilst also learning from the challenges and mistakes along the way.

“There is no doubt that this is an exciting journey and I hope to continue to grow over the next few years. iwoca has played a vital part in providing us with the finance required to do just that.”

Methodology

iwoca analysed Companies House data comparing business registrations between January and June 2019, January and June 2021 and January and June 2022. Using the complete postcodes provided in the data, we have matched these to upper tier local authority codes using a postcode look up. These include counties, metropolitan counties, inner and outer London and unitary authorities.

Please contact press@iwoca.co.uk if you'd like to see the full analysis of data, or have any questions on it.

Charlotte was a UK PR Manager at iwoca. She's been sharing news and insights about the finance industry for over four years.

Article updated on:
August 17, 2022

Get started

  • Borrow up to £500,000
  • Repay early with no fees
  • From 1 day to 24 months
  • Applying won't affect your credit score
Apply now
red line and yellow circle

Other finance related topics

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

View all
Alternative business funding

Supply chain finance

Supply chain finance plays a crucial role in the success of businesses in the UK. It involves various financial techniques and solutions that help optimise the movement of goods and funds along the supply chain. By understanding the basics of supply chain finance, businesses can unlock potential opportunities and drive growth in the competitive market.

Accountants

Management buyout

A management buyout (MBO) is a well-known strategy in the business world that allows the existing management team to take control of a company by purchasing either all or a majority of the company's shares from its current owners. In the UK, management buyouts have gained significant popularity as a means of acquiring and managing businesses.

Alternative business funding

Property refurbishment loans

In today’s competitive real estate market, property refurbishment has become an increasingly popular strategy for investors looking to maximise their returns. However, undertaking a renovation project can often require a significant amount of capital upfront. This is where property refurbishment loans come in to provide the necessary funding. In this article, we will explore everything you need to know about these loans and how they can help turn your property investment dreams into a reality.

light blue wedge

Let’s get started

Applying won’t affect your credit score

Need help? Call us:

Get approved in 24 hours

Applying won’t affect your credit score

What's next?

  • Apply in 5 minutes
  • Meet your account manager
  • Get money in the bank in hours

Need help? Call us:

No items found.