UK Business Demography – January 2024 Update
Explore the strength of the UK business population and discover insights into regional activity over the past three months. Our overview provides a snapshot of each region’s capacity to support growth and gives you an understanding of the business landscape.
16 February 2024 • 11 minute read
Overview
As of January 2024, there are 5.30m active and dormant companies in the UK. This figure has increased from the 5.28m companies recorded in the previous period, marking an increase of 0.6% since October 2023. There has been an overall decline in company incorporations, with a median regional decrease of 0.30% in new companies incorporated between November and January, compared to August to October 2023.
This decline in new company formations is accompanied by a decrease in investment volumes, with a median reduction of 7.94% from the previous period. Amid the backdrop of lower equity investment volumes, some regions have also experienced a decline in grant funding, resulting in a median regional decrease of 6.23%. London and the South East rank the highest by number of active spinouts, with 266 and 253, respectively.
Regional highlights
London constitutes 28.8% of all active and dormant companies in the UK as of January 2024. The region also leads in terms of investment volumes and grant funding. Despite an overall decline across the UK, a number of regions have made significant strides since the previous period. The North East recorded the highest growth in investment, with a 1,009% surge totalling £142m. This notable growth can be attributed to a substantial £100m deal secured by digital bank Atom in November. Investment in Northern Ireland increased by 341%, or £31.6m over three months.
Yorkshire and The Humber recorded the lowest proportional change in equity and grant funding across our tracking period, securing a total of £31.4m over three months, compared to £98.2m in the previous period. The West Midlands recorded the highest growth in grant funding over a 12-month period, with a 400% increase. This totalled £775m over 165 grants.
Key metrics
The metrics used in this analysis provide insights into the UK’s business ecosystem, reflecting the opportunities available for companies nationwide. Population metrics and trends in new company formations offer insights into regional attractiveness and growth potential. Companies securing equity investment and innovation grants demonstrate a commitment to scaling up and improving their operations. The spinout population serves as an indicator of intellectual property generation, fostering economic growth at both regional and national levels.
The information presented in the UK Business Demography – January Update is sourced from Beauhurst, a comprehensive database of UK companies. The data covers the three months up to the end of January 2023. It also includes grant data for the 12 months from January 2023 to January 2024, with growth rates calculated using the grant data for the 12 months from October 2022 to October 2023. The spinout population data is accurate as of the end of January 2024.
UK Business Demography map
Company population:
The information presented in the UK Business Demography – January Update is sourced from Beauhurst, a comprehensive database of UK companies. The data covers the three months up to the end of January 2023. It also includes grant data for the 12 months from January 2023 to January 2024, with growth rates calculated using the grant data for the 12 months from October 2022 to October 2023. The spinout population data is accurate as of the end of January 2024.
Scotland |
|||
| Company population now: | 293,048 |  |
1.12% |
| Incorporations in past 3 months | 9,794 |  |
-5.85% |
| Investment in past 3 months: | £232m | |
-11.1% |
| Grants in past 12 months (January 2023 - January 2024): | £84.7m | |
-28.2% |
| Spinouts: | 176 | ||
Northern Ireland |
|||
| Company population now: | 86,183 | |
5.13% |
| Incorporations in past 3 months | 5,467 | |
31.8% |
| Investment in past 3 months: | £31.6m | |
341% |
| Grants in past 12 months (January 2023 - January 2024): | £70.2m | |
-31.2% |
| Spinouts: | 57 | ||
North West (England) |
|||
| Company population now: | 521,455 | |
1.08% |
| Incorporations in past 3 months | 21,933 | |
-0.12% |
| Investment in past 3 months: | £445m | |
425% |
| Grants in past 12 months (January 2023 - January 2024): | £129m | |
-11.6% |
| Spinouts: | 104 | ||
Wales |
|||
| Company population now: | 166,081 | |
3.11% |
| Incorporations in past 3 months | 6,081 | |
10.7% |
| Investment in past 3 months: | £12.2m | |
-38.7% |
| Grants in past 12 months (January 2023 - January 2024): | £71.1m | |
2.89% |
| Spinouts: | 57 | ||
West Midlands (England) |
|||
| Company population now: | 419,372 | |
1.46% |
| Incorporations in past 3 months | 18,553 | |
-0.43% |
| Investment in past 3 months: | £47.3m | |
-36.3% |
| Grants in past 12 months (January 2023 - January 2024): | £775m | |
400% |
| Spinouts: | 67 | ||
South West (England) |
|||
| Company population now: | 353,467 | |
0.89% |
| Incorporations in past 3 months | 10,821 | |
-2.11% |
| Investment in past 3 months: | £133m | |
-27.3% |
| Grants in past 12 months (January 2023 - January 2024): | £117m | |
-0.85% |
| Spinouts: | 139 | ||
North East (England) |
|||
| Company population now: | 118,056 | |
1.36% |
| Incorporations in past 3 months | 4,801 | |
-3.36% |
| Investment in past 3 months: | £142m | |
1,009% |
| Grants in past 12 months (January 2023 - January 2024): | £122m | |
204% |
| Spinouts: | 52 | ||
Yorkshire and the Humber (England) |
|||
| Company population now: | 321,187 | |
0.92% |
| Incorporations in past 3 months | 13,155 | |
0.97% |
| Investment in past 3 months: | £31.4m | |
-68% |
| Grants in past 12 months (January 2023 - January 2024): | £21.3m | |
-61.7% |
| Spinouts: | 83 | ||
East Midlands (England) |
|||
| Company population now: | 292,675 | |
1.24% |
| Incorporations in past 3 months | 10,969 | |
0.97% |
| Investment in past 3 months: | £20.3m | |
-36.6% |
| Grants in past 12 months (January 2023 - January 2024): | £41.0m | |
-15.3% |
| Spinouts: | 58 | ||
East of England |
|||
| Company population now: | 488,184 | |
1.26% |
| Incorporations in past 3 months | 17,826 | |
-1.35% |
| Investment in past 3 months: | £379m | |
-4.77% |
| Grants in past 12 months (January 2023 - January 2024): | £58.9m | |
-13.4% |
| Spinouts: | 167 | ||
London (England) |
|||
| Company population now: | 1,526,667 | |
1.61% |
| Incorporations in past 3 months | 81,746 | |
-3.53% |
| Investment in past 3 months: | £3.04b | |
93.6% |
| Grants in past 12 months (January 2023 - January 2024): | £439m | |
1.86% |
| Spinouts: | 266 | ||
South East (England) |
|||
| Company population now: | 716,619 | |
0.93% |
| Incorporations in past 3 months | 22,696 | |
-0.16% |
| Investment in past 3 months: | £390m | |
74.9% |
| Grants in past 12 months (January 2023 - January 2024): | £216m | |
41.1% |
| Spinouts: | 253 | ||
Download the demography map here:
UK Business Demography map (209kb pdf)
The metrics offer valuable insight into the strength of the UK business ecosystem and the opportunities available to the companies within it. By examining population metrics and changes in newly incorporated companies, we obtain insight into the attractiveness of each region and its capacity to support business growth. Companies securing funds via equity investment and winning innovation grants demonstrate their intent to scale up and develop their businesses. The spinout population in each region serves as an indicator of IP generation, which can provide a competitive edge and hence drive economic growth across a company’s region and the UK as a whole.
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