Overview
The UK is home to 5.08m active and dormant companies (April 2023), a population that has grown by 4.55% over the three months since January 2023. There has been growth in company incorporations in all regions, with an average 21.8% increase by region over the three months. The South East had the highest number of spinout companies, totalling 248, which accounted for 18.0% of the total. London is the second most populous region for spinouts, with 237 companies.
Against a backdrop of increasing company numbers, most regions also saw an increase in investment volumes. However, some regions had declines in investment totals, resulting in a low median change of 6.45%. Several regions had a decrease in the value of grant funding received, resulting in a median change of -0.51% across the regions.
Regional highlights
London is home to the most companies, accounting for a substantial 28.5% of all businesses in the country. Because of its established entrepreneurial ecosystem and large population density, London dominates in new company incorporations and leads in terms of investment value and the number of grants awarded. Despite London’s dominance across the metrics, the South West experienced 404% growth in investment over the three months, securing £403m in funding. This surge was primarily driven by a significant deal worth £230m in March 2023, which accounted for 85.5% of the total funding secured by the region. The East Midlands and Wales followed closely with a 164% and 161% increase in investment, respectively, with a total of £114m and £56.9m secured in the three months.
Northern Ireland had the highest percentage increase (44.0%) in company incorporations in the three months ending April 2023 compared to the prior three-month period. However, this increase was largely due to the low base of companies headquartered in the region.
Key metrics
The metrics provide valuable insight into the strengths of the UK business population and the opportunities available to these companies. Population rates and changes in incorporation numbers offer a snapshot of each region’s attractiveness and its capacity to support business growth. Companies procuring funds via equity investment and winning innovation grants demonstrate their intent to grow rapidly and develop innovative business models and technologies. The spinout population in each region is an index of IP generation, which can provide a meaningful competitive advantage, driving economic growth in a company’s region and across the UK.
UK Business Demography map
Company population:
The information presented in the UK Business Demography – April Update is sourced from Beauhurst, a comprehensive database of UK companies. The data covers the three months up to the end of April 2023. It also includes grant data for the 12 months from April 2022 to April 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 April 2023.
Scotland |
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| Company population now: | 282,338 |  |
4.03% |
| Incorporations in past 3 months | 10,925 | |
27.6% |
| Investment in past 3 months: | £189m |  |
-28.1% |
| Grants in past 12 months (April 2022 - April 2023): | £130.7m | |
-0.1% |
| Spinouts: | 173 | ||
North Ireland |
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| Company population now: | 77,420 | |
3.57% |
| Incorporations in past 3 months | 2,670 | |
44.0% |
| Investment in past 3 months: | £16.5m | |
-77.2% |
| Grants in past 12 months (April 2022 - April 2023): | £69.1m | |
104.2% |
| Spinouts: | 54 | ||
North West (England) |
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| Company population now: | 502,934 | |
4.49% |
| Incorporations in past 3 months | 21,589 | |
17.9% |
| Investment in past 3 months: | £126m | |
-14.7% |
| Grants in past 12 months (April 2022 - April 2023): | £54.5m | |
-5.6% |
| Spinouts: | 99 | ||
Wales |
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| Company population now: | 153,522 | |
3.85% |
| Incorporations in past 3 months | 5,697 | |
8.1% |
| Investment in past 3 months: | £56.9m | |
160.8% |
| Grants in past 12 months (April 2022 - April 2023): | £27.3m | |
-32.1% |
| Spinouts: | 60 | ||
West Midlands (England) |
|||
| Company population now: | 399,172 | |
4.53% |
| Incorporations in past 3 months | 17,287 | |
19.0% |
| Investment in past 3 months: | £136m | |
123.1% |
| Grants in past 12 months (April 2022 - April 2023): | £118m | |
4.5% |
| Spinouts: | 63 | ||
South West (England) |
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| Company population now: | 343,859 | |
3.62% |
| Incorporations in past 3 months | 12,012 | |
25.0% |
| Investment in past 3 months: | £403m | |
404.4% |
| Grants in past 12 months (April 2022 - April 2023): | £129m | |
5.1% |
| Spinouts: | 102 | ||
North East (England) |
|||
| Company population now: | 113,009 | |
4.74% |
| Incorporations in past 3 months | 5,118 | |
20.4% |
| Investment in past 3 months: | £38.3m | |
-16.4% |
| Grants in past 12 months (April 2022 - April 2023): | £51.4m | |
-1.0% |
| Spinouts: | 42 | ||
Yorkshire and the Humber (England) |
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| Company population now: | 311,853 | |
4.52% |
| Incorporations in past 3 months | 13,484 | |
17.6% |
| Investment in past 3 months: | £130.5m | |
13.5% |
| Grants in past 12 months (April 2022 - April 2023): | £130.7m | |
-0.1% |
| Spinouts: | 80 | ||
East Midlands (England) |
|||
| Company population now: | 283,758 | |
4.27% |
| Incorporations in past 3 months | 11,625 | |
22.5% |
| Investment in past 3 months: | £114m | |
163.5% |
| Grants in past 12 months (April 2022 - April 2023): | £42.9m | |
12.4% |
| Spinouts: | 54 | ||
East of England |
|||
| Company population now: | 470,052 | |
3.95% |
| Incorporations in past 3 months | 17,850 | |
21.4% |
| Investment in past 3 months: | £318m | |
0.5% |
| Grants in past 12 months (April 2022 - April 2023): | £86.5m | |
-36.9% |
| Spinouts: | 165 | ||
London (England) |
|||
| Company population now: | 1,446,506 | |
5.85% |
| Incorporations in past 3 months | 79,945 | |
16.8% |
| Investment in past 3 months: | £3.20bn | |
4.78% |
| Grants in past 12 months (April 2022 - April 2023): | £346m | |
-8.1% |
| Spinouts: | 237 | ||
South East (England) |
|||
| Company population now: | 698,543 | |
3.44% |
| Incorporations in past 3 months | 23,261 | |
21.7% |
| Investment in past 3 months: | £541m | |
-10.2% |
| Grants in past 12 months (April 2022 - April 2023): | £157m | |
2.1% |
| Spinouts: | 248 | ||