UK Business Demography – July 2023 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.
25 August 2023 • 10 minute read
Overview
As of July 2023, there are 5.19m active and dormant companies in the UK. This figure has grown from 5.08m companies over the past three months, marking an increase of 2.17% since April 2023. Nonetheless, this growth in the business population is juxtaposed against a decline in company incorporations at the regional level over the past three months. There was a median regional decrease of -3.53% in new companies created within the UK between May and July 2023, compared to February to April 2023.
This decline in new company formations is accompanied by a decrease in investment volumes, with a median reduction of -30.7% from the previous period. Amid the backdrop of decreasing equity investment, some regions have also experienced a decline in grant funding, resulting in a median regional decrease of -10.8%. London and the South East rank the highest by number of active spinouts, with 256 and 240, respectively.
Regional highlights
London ranks the highest in terms of company population, accounting for 28.5% of all active and dormant companies in the UK as of July 2023. London also leads in terms of incorporations, investment volumes and grant funding. However, its proportional growth in equity funding over three months to July 2023 was one of the lowest across the country, with a decrease of -32.5%.
Investment in Northern Ireland grew by 238% due to a deal worth £32.0m in June 2023. The North East recorded the lowest proportional change in investment across our tracking period, securing a total of £38.2m over three months.
Northern Ireland was also the top region in terms of grant funding volumes. Growing by 23.6%, the value of grants awarded to companies in Northern Ireland was proportionately larger from July 2022 to July 2023 compared to the 12 months spanning April 2022 to April 2023.
Key metrics
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.
UK Business Demography map
Company population:
The information presented in the UK Business Demography – July Update is sourced from Beauhurst, a comprehensive database of UK companies. The data set covers the three months up to the end of July 2023. It also includes grant data for the 12 months from July 2022 to July 2023, with growth rates calculated using the grant data for the 12 months from January 2022 to January 2023. The spinout population data is accurate as of the end of July 2023.
Scotland |
|||
| Company population now: | 285,483 |  |
1.11% |
| Incorporations in past 3 months | 9,944 |  |
-8.98% |
| Investment in past 3 months: | £136m | |
-28.3% |
| Grants in past 12 months (July 2022 - July 2023): | £128m | |
-2.16% |
| Spinouts: | 172 | ||
Northern Ireland |
|||
| Company population now: | 79,061 | |
2.12% |
| Incorporations in past 3 months | 3,139 | |
17.6% |
| Investment in past 3 months: | £79.6m | |
382% |
| Grants in past 12 months (July 2022 - July 2023): | £85.4m | |
23.6% |
| Spinouts: | 53 | ||
North West (England) |
|||
| Company population now: | 504,171 | |
0.25% |
| Incorporations in past 3 months | 21,054 | |
-2.48% |
| Investment in past 3 months: | £91.7m | |
-27.5% |
| Grants in past 12 months (July 2022 - July 2023): | £43.8m | |
-19.7% |
| Spinouts: | 104 | ||
Wales |
|||
| Company population now: | 156,154 | |
1.71% |
| Incorporations in past 3 months | 5,421 | |
4.84% |
| Investment in past 3 months: | £40.5m | |
-28.8% |
| Grants in past 12 months (July 2022 - July 2023): | £24.2m | |
-11.4% |
| Spinouts: | 58 | ||
West Midlands (England) |
|||
| Company population now: | 405,682 | |
1.63% |
| Incorporations in past 3 months | 17,531 | |
1.41% |
| Investment in past 3 months: | £47.8m | |
-64.8% |
| Grants in past 12 months (July 2022 - July 2023): | £149m | |
26.1% |
| Spinouts: | 67 | ||
South West (England) |
|||
| Company population now: | 340,062 | |
-1.10% |
| Incorporations in past 3 months | 10,543 | |
-12.2% |
| Investment in past 3 months: | £183m | |
-54.6% |
| Grants in past 12 months (July 2022 - July 2023): | £91.6m | |
-28.9% |
| Spinouts: | 137 | ||
North East (England) |
|||
| Company population now: | 114,722 | |
1.52% |
| Incorporations in past 3 months | 4,913 | |
-4.01% |
| Investment in past 3 months: | £38.2m | |
-0.40% |
| Grants in past 12 months (July 2022 - July 2023): | £38.1m | |
-25.8% |
| Spinouts: | 44 | ||
Yorkshire and the Humber (England) |
|||
| Company population now: | 305,525 | |
-2.03% |
| Incorporations in past 3 months | 12,315 | |
-8.67% |
| Investment in past 3 months: | £58.0m | |
-55.5% |
| Grants in past 12 months (July 2022 - July 2023): | £56.6m | |
-10.4% |
| Spinouts: | 73 | ||
East Midlands (England) |
|||
| Company population now: | 285,827 | |
0.73% |
| Incorporations in past 3 months | 10,809 | |
-7.02% |
| Investment in past 3 months: | £38.0m | |
-66.6% |
| Grants in past 12 months (July 2022 - July 2023): | £33.8m | |
-21.2% |
| Spinouts: | 58 | ||
East of England |
|||
| Company population now: | 476,392 | |
1.35% |
| Incorporations in past 3 months | 17,770 | |
-0.45% |
| Investment in past 3 months: | £270m | |
-14.9% |
| Grants in past 12 months (July 2022 - July 2023): | £76.0m | |
-12.1% |
| Spinouts: | 164 | ||
London (England) |
|||
| Company population now: | 1,473,949 | |
1.90% |
| Incorporations in past 3 months | 82,331 | |
2.98% |
| Investment in past 3 months: | £2.16bn | |
-32.5% |
| Grants in past 12 months (July 2022 - July 2023): | £330m | |
-4.62% |
| Spinouts: | 256 | ||
South East (England) |
|||
| Company population now: | 702,934 | |
0.63% |
| Incorporations in past 3 months | 22,551 | |
-3.05% |
| Investment in past 3 months: | £334m | |
-38.2% |
| Grants in past 12 months (July 2022 - July 2023): | £164m | |
4.85% |
| Spinouts: | 240 | ||
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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