NatWest and Beauhurst Startup Index: UK company numbers hit eight-year high at 5.66 million
The UK’s startup landscape showed resilience and continued regional growth in 2025, with new data revealing a record 5.66 million active companies – up 0.82% on the previous year according to the NatWest and Beauhurst latest Startup Index.
The Startup Index, which provides a comprehensive analysis of business and venture creation across the UK, showed that despite tough economic conditions, founders adapted to shifting market pressures and maintained momentum through 2025. Despite a slight dip in company incorporations year-on‑year, the Index reveals a robust and growing active company base, sectoral dynamism, and notable regional shifts – highlighting continued entrepreneurial confidence and signalling the underlying strength and resilience of the UK’s business ecosystem.
Key findings
- Active companies: The total number of active UK companies reached a new eight-year high of 5.66 million — an increase of 0.82% compared to 2024, reflecting sustained growth in the business ecosystem.
- Company incorporations: 832,000 new companies were registered in the UK during 2025, a modest decrease of 1.65% from the previous year. Incorporation levels stayed above those in 2021 and 2022, signalling stability after recent exceptional growth.
- Quarterly trends: Contrary to established seasonal patterns, incorporations peaked in Q3 (219,000) before a sharper-than-usual decline in Q4, likely influenced by new director identity verification rules.
Accelerating growth
NatWest’s Accelerator helps early stage and high‑growth businesses launch, scale and thrive, delivering standout results across the UK. Businesses that complete the programme report 104% year‑ on year turnover growth, compared with 20% in a control group, and nine in ten remain trading after three years – far outperforming non‑participants. Businesses that complete the programme report 104% year‑on-year turnover growth, compared with 20% in a control group, and nine in ten remain‑ trading after three years1 – far outperforming non‑participants. Earlier this month, NatWest announced plans to expand the Accelerator community to 50,000 members.
This move forms part of the bank’s five ‑point Growing Together plan to boost UK wide‑ growth by backing regional economies, supporting midmarket firms, strengthening infrastructure‑ and housing foundations, improving financial confidence, and championing the innovators shaping the future economy.
Darren Pirie, head of Accelerator at NatWest, commented: “The UK’s entrepreneurial spirit remains strong, with active company numbers rising despite macroeconomic challenges. These figures show business owners are continuing to adapt and innovate. Small businesses drive growth across the UK, and NatWest is proud to support them to start and scale, which is why this year we’re expanding our free Accelerator five‑fold to support 50,000 members.”
Emma Jones CBE, small business commissioner, commented: “It is good to see from this research that the number of overall active businesses is up, we are playing our part to ensure continued growth by getting money moving faster through the economy and into the hands of small firms. I have witnessed and experienced the challenges that businesses have faced in the past few years and have deep respect for founders who show resilience and continue to hire, export, and innovate. Long may they survive and thrive.”
Regional picture: North East leads the way
The business formation landscape varied across the UK, with the North East, Scotland and the North West recording the strongest year on year growth in incorporations, rising by 5.27%, 4.27% and 3.55% respectively. Northern Ireland and Wales saw the largest declines, reflecting a return to pre-2023 levels after earlier surges. London remained the UK’s startup hub with 279,000 new businesses, though its growth rate eased slightly. At a local level, Camden led all authorities for new company formations, with strong expansion also seen in Birmingham and Edinburgh.
Sector trends: Software development leads fastest growth
Real estate activities remained among the top sectors for new company formations, with both “Other letting and operating of own or leased real estate” and “Buying and selling of own real estate” posting year on year growth. Technology led activity showed the strongest momentum, with “Business and domestic software development” recording the fastest sectoral growth — up 38.4% to 24,800 new incorporations. Online retail also continued to perform strongly, underscoring the lasting strength of ecommerce.
Impact of regulatory reform
The continued implementation of the Economic Crime and Corporate Transparency Act – particularly new director identity verification requirements – contributed to a more selective incorporation environment. These reforms, intended to improve transparency and combat fraud, increased scrutiny, likely tempering incorporation volumes while strengthening the overall integrity of the UK’s business ecosystem.
Case Study: Marka
One of the standout stories from NatWest’s Newcastle Accelerator from 2025 is Marka, founded by Robert Bowey & Chiara Wilson. Marka was spun out of Northumbria university and started fully trading in January 2025, providing a standardised sustainability rating for the hospitality industry. Businesses can showcase their sustainability efforts and it allows customers to choose suppliers based on their environmental impact. Robert and Chiara benefitted from the one-to-one coaching, sales workshops and networking opportunities provided by Accelerator. This included building connections with other accelerator businesses including those in the hospitality sector.
Rob Bowey, co-founder, Marka, said: “The NatWest Accelerator has provided a focused environment and a supportive community that has been instrumental in helping us gain new skills and most importantly the opportunities to grow our business. As market disruptors, it can be difficult to find understanding from those who ran businesses in a different era. The NatWest team’s willingness to truly listen to our ambitions, opportunities, and flaws has been a refreshing change, not to mention the amazing community they’ve built here.”