UK startup resilience: Record 5.66m active businesses as tech startups surge
NatWest and Beauhurst’s New Startup Index published today shows the UK’s active business population continues to grow as entrepreneurs adapt to a changing business environment.
- 402,000 new companies incorporated across the UK in H1 2026
- Active company base grows to 5.66 million businesses
- Startup activity continues across every UK region, with Scotland recording the strongest growth
- Application software startups increase 40% year-on-year, highlighting the strength of the UK technology sector
The UK’s active business population has reached a record 5.66 million companies, demonstrating the strength and adaptability of British entrepreneurship despite a moderation in new company incorporations, according to the latest New Startup Index.
A total of 402,000 new businesses were registered with Companies House in the first half of 2026, a 5.7% decrease compared with H1 2025. However, entrepreneurial activity remained widespread across every region of the UK, with the continued growth in the active company base providing evidence of the resilience of the UK business landscape.
Technology businesses were a standout performer during the first half of the year. Application software became the UK’s most active startup category with 28,100 new businesses incorporated. The wider digital and technology sector also recorded strong growth, reflecting continued innovation and investment in areas such as AI and emerging technologies.
Regional entrepreneurship also remained vibrant. Scotland recorded the strongest growth in startup activity, with incorporations rising 3.73% compared with H2 2025. The East Midlands followed with growth of 3.30%, while London remained the UK’s leading hub for new business creation, accounting for more than 136,000 new companies.
While incorporation volumes have adjusted compared with previous years, the data suggests regulatory reforms may be contributing to a higher-quality company register by reducing low-intent and fraudulent registrations.
Darren Pirie, head of accelerator and strategic partnerships at NatWest, said: “The latest data shows UK entrepreneurship remains in good health. While startup formation has moderated, more businesses are operating across the UK than ever before and founders continue to identify opportunities for growth, particularly in high-potential sectors such as technology and software. The strength of entrepreneurial activity across every region of the country underlines the important role new businesses play in supporting innovation, investment and local economic growth.”
Sebastian Burnside, chief economist for NatWest Group, said: “Britain’s startup economy is adjusting, not retreating. While incorporations eased in the first half of 2026, the active company base has continued to grow, showing the underlying resilience of UK entrepreneurs against a turbulent backdrop. The shift towards software and digital businesses is especially striking and speaks to the economy’s changing centre of gravity as technology transforms what we do and how we do it. This underlines the importance of backing the founders who are driving those opportunities wherever they are, connecting them to the right support, and helping turn ambition into long-term growth.”