84 new businesses created every hour in first half of 2025
84 new businesses were created every hour across Britain in the first half of 2025 despite continued economic uncertainty, according to the annual Business Hotspots list from iwoca — one of Europe’s largest SME lenders. iwoca’s research, derived from an analysis of Companies House data, finds that over 363,000 businesses were registered in Britain between January and June 2025.
Registrations fall following Companies House changes
iwoca’s Business Hotspots 2025 reveals that the number of new companies registered in the first half of 2025 fell 21% compared with the same period in 2024. This follows changes to Companies House rules that came into effect in Spring 2024 which increased requirements and fees when registering a new business to help crack down on fraud and tax evasion, as well as persistently low SME confidence over the last 12 months.
This was the first year that registrations fell nationwide since iwoca’s Business Hotspots index began in 2021. Wales was the most affected region by this drop in registration numbers, falling 39% from 24,613 in the first half of 2024 to 15,053 from January to June this year. The South West, meanwhile, saw the smallest drop compared with the first six months of 2024, falling 9% from 20,846 to 19,030 over the same period in 2025.
Across Britain, registrations fell in 201 local unitary authorities and rose in just three. Cardiff saw the single largest decline of any local authority in Britain, falling 52% from 15,679 in the first half of 2024 to 7,485. Somerset saw the largest increase in 2025, with new registrations rising 167% from 603 to 1,612 in the first six months of 2024 and 2025 respectively.
London dominance continues
The research reveals that London remained the region or devolved nation with the highest rate of business creation in the first half of the year with 1,307 businesses created per 100,000 people. This is despite a 25% drop in the number of new businesses registered in the capital, with the number of new companies falling from 152,439 between January and June 2024 to 114,905 in the first six months of 2025.
The North West climbed to second place with 570 new businesses per 100,000, rising from fourth in 2024. While there were fewer new companies in the North West in the first half of 2025, the number of new registrations fell by 10% from 46,742 in the same period in 2024 to 42,257 this year — compared with a nationwide reduction of 21%.
Last year’s runner-up in new business creation per capita, Wales, slipped to fourth with 484 new companies registered for every 100,000 residents falling behind the North West and the West Midlands (532). Scotland fell to the bottom of the list this year, with just 328 companies set up for every 100,000 people.
Camden tops the list of council areas
Camden retained its spot as the top among Britain’s local authorities for the fifth year in a row, despite a big drop in the number of new businesses in the first half of 2025. The London borough saw 7,031 new companies per 100,000 residents earlier this year, despite the number of registrations falling 40% from 24,302 to 14,774. Westminster ranks in second this year with 5,084 per 100,00 residents, followed by Islington (4,749) in third.
Just one local authority outside of London features in the top 10 of Business Hotspots 2025, with Cardiff boasting 2,066 new businesses per 100,000 residents, ranking sixth in Britain. Manchester is the next highest area outside of the capital, coming in 13th with 1,168 new companies per 100,000 people.
Christoph Rieche, CEO and co-founder of iwoca, said: “Startups are the fresh organisms in our economic ecosystem, driving innovation, efficiency, and future prosperity. While new business registrations fell in 2025 due to stricter Companies House rules, it’s encouraging to see over 363,000 new firms still launched in the first half of the year. This clearly shows that Britain’s entrepreneurial spirit remains incredibly strong. We wish all these founders every success.”