Overview
As of October 2023, there are 5.28m active and dormant companies in the UK. This figure reflects an uptick from the 5.19m companies recorded three months ago, marking an increase of 1.73% since July 2023. This surge in the business population corresponds with an increase in company incorporations over the same period, showcasing a median regional rise of 1.91% in company formations between August and October 2023.
However, amidst a backdrop of increasing company numbers, there has been a noticeable decline in investment volumes, with a median reduction of -11.7% compared to the previous period. On the other hand, grant funding volumes have grown substantially, with the majority of regions recording a surge in grant funding compared to the previous period. London and the South East take the lead in terms of active spinouts, with 257 and 248, respectively.
Regional highlights
London constitutes 28.5% of all active and dormant companies in the UK as of October 2023. The region also leads in terms of incorporations, investment volumes and grant funding. Despite London’s dominance across the metrics, Scotland has made significant strides since the previous period, with a 92.6% surge in investment totalling £261m. This notable growth can be attributed to a substantial £106m deal secured by Bluebox Aviation Systems in September, accounting for 60.4% of the total secured by Scottish companies during this period.
Some regions, namely the West Midlands and the South West, experienced growth across all metrics. The North West recorded the highest growth in grant funding over a 12-month period, with a 233% increase, or £146m, in the value of grants awarded to companies. This totalled 354 grants. Investment in Northern Ireland decreased by -91.0%, marking the lowest proportional change during the three-month tracking period. The region secured a total of £7.17m via nine deals.
Key metrics
The metrics used in this analysis provide insight into the robustness of the UK’s business ecosystem and the myriad of opportunities available to businesses. Through an analysis of population metrics and the dynamics of freshly incorporated companies, we gain insights into the appeal of each region and its potential to foster growth.
Companies securing equity investments and innovation grants show a strong commitment to growth and a drive to advance and improve their business operations. Additionally, the spinout population within each region serves as an indicator of IP generation, providing a competitive advantage to catalyse economic growth both within the company’s local area and on a broader scale, encompassing the UK as a whole.
UK Business Demography map
Company population:
The information presented in the UK Business Demography – October Update is sourced from Beauhurst, a comprehensive database of UK companies. The data covers the three months up to the end of October 2023. It also includes grant data for the 12 months from October 2022 to October 2023, with growth rates calculated using the grant data for the 12 months from July 2022 to July 2023. The spinout population data is accurate as of the end of October 2023.
Scotland |
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| Company population now: | 289,795 |  |
1.51% |
| Incorporations in past 3 months | 10,402 | |
4.40% |
| Investment in past 3 months: | £261m | |
92.6% |
| Grants in past 12 months (October 2022 - October 2023): | £118m |  |
-7.44% |
| Spinouts: | 175 | ||
Northern Ireland |
|||
| Company population now: | 81,978 | |
3.69% |
| Incorporations in past 3 months | 4,148 | |
24.3% |
| Investment in past 3 months: | £7.17m | |
-91% |
| Grants in past 12 months (October 2022 - October 2023): | £102m | |
19% |
| Spinouts: | 55 | ||
North West (England) |
|||
| Company population now: | 515,903 | |
2.33% |
| Incorporations in past 3 months | 21,959 | |
4.12% |
| Investment in past 3 months: | £84.4m | |
-7.57% |
| Grants in past 12 months (October 2022 - October 2023): | £146m | |
233% |
| Spinouts: | 105 | ||
Wales |
|||
| Company population now: | 161,064 | |
3.14% |
| Incorporations in past 3 months | 5,494 | |
1.33% |
| Investment in past 3 months: | £19.9m | |
-50.8% |
| Grants in past 12 months (October 2022 - October 2023): | £69.1m | |
185% |
| Spinouts: | 57 | ||
West Midlands (England) |
|||
| Company population now: | 413,336 | |
1.89% |
| Incorporations in past 3 months | 18,634 | |
5.92% |
| Investment in past 3 months: | £74.2m | |
55.1% |
| Grants in past 12 months (October 2022 - October 2023): | £155m | |
4.34% |
| Spinouts: | 67 | ||
South West (England) |
|||
| Company population now: | 350,348 | |
3.02% |
| Incorporations in past 3 months | 11,054 | |
4.62% |
| Investment in past 3 months: | £183m | |
0.03% |
| Grants in past 12 months (October 2022 - October 2023): | £118m | |
29.2% |
| Spinouts: | 138 | ||
North East (England) |
|||
| Company population now: | 116,471 | |
1.52% |
| Incorporations in past 3 months | 4,968 | |
1.11% |
| Investment in past 3 months: | £12.8m | |
-66.3% |
| Grants in past 12 months (October 2022 - October 2023): | £40.1m | |
5.32% |
| Spinouts: | 48 | ||
Yorkshire and the Humber (England) |
|||
| Company population now: | 318,270 | |
4.17% |
| Incorporations in past 3 months | 13,029 | |
5.48% |
| Investment in past 3 months: | £98.2m | |
69.2% |
| Grants in past 12 months (October 2022 - October 2023): | £55.6m | |
-1.69% |
| Spinouts: | 83 | ||
East Midlands (England) |
|||
| Company population now: | 289,081 | |
1.14% |
| Incorporations in past 3 months | 10,864 | |
0.51% |
| Investment in past 3 months: | £32.0m | |
-15.8% |
| Grants in past 12 months (October 2022 - October 2023): | £48.4m | |
43.2% |
| Spinouts: | 58 | ||
East of England |
|||
| Company population now: | 482,109 | |
1.20% |
| Incorporations in past 3 months | 18,070 | |
1.66% |
| Investment in past 3 months: | £398m | |
47.2% |
| Grants in past 12 months (October 2022 - October 2023): | £68.0m | |
-12.1% |
| Spinouts: | 170 | ||
London (England) |
|||
| Company population now: | 1,502,512 | |
1.94% |
| Incorporations in past 3 months | 84,739 | |
2.84% |
| Investment in past 3 months: | £1.57bn | |
-27.4% |
| Grants in past 12 months (October 2022 - October 2023): | £431m | |
30.7% |
| Spinouts: | 257 | ||
South East (England) |
|||
| Company population now: | 709,999 | |
1.01% |
| Incorporations in past 3 months | 22,733 | |
0.80% |
| Investment in past 3 months: | £223m | |
-33.2% |
| Grants in past 12 months (October 2022 - October 2023): | £152m | |
-7.44% |
| Spinouts: | 248 | ||
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.