In a strong indicator of the UK’s economic potential, 468,000 new businesses were launched in the first half of 2024, according to the New Startup Index by Beauhurst, supported by NatWest.
This surge brings the total number of companies operating in the UK to 5.47 million as of June 2024, with new firms primarily emerging in the wholesale, retail, and professional services sectors. The UK has witnessed significant growth in new business formations, rising from 173,000 in the first quarter of 2020 to 248,000 in the first quarter of 2024—a 43.4% increase.
Among the UK regions, London led the way in the first half of 2024 with 161,000 new business incorporations, the highest across all regions. The West Midlands and Yorkshire and the Humber also saw notable growth, with increases of 10.1% and 8.15%, respectively.
Further analysis by Beauhurst shows that businesses participating in NatWest’s free accelerator program are more likely to achieve higher turnover growth, secure more investment, and have better survival rates compared to other similar businesses.
Data published by NatWest reveals that businesses in its accelerator program experienced an average 70.5% increase in investment over a three-year period. These businesses also saw turnover growth 35% higher than that of their peers. Remarkably, while just over half of startups typically survive their first three years, 9 out of 10 businesses on the NatWest accelerator program were still operational three years later.
Paul Thwaite, NatWest Group CEO, emphasized the importance of supporting new businesses: “The UK’s potential for growth is evident in the number of people starting their own businesses. Small businesses are the backbone of our economy, accounting for three-fifths of employment and about half of the private sector’s turnover. If given the right conditions to succeed, these new businesses could provide a significant boost to the UK economy.
“NatWest Group plays a key role in helping more businesses get started than any other bank across the UK. Our accelerator program has proven to significantly boost businesses’ turnover, investment, and chances of survival. This September, we’re doubling the number of free places on our Accelerator program to 2,500 businesses, creating an environment where they can thrive—because when small businesses succeed, the UK succeeds.”
Business and Trade Secretary Jonathan Reynolds echoed this sentiment, saying: “Our mission is to drive economic growth and make the UK the best place to start up and scale up a business. This can only be achieved through partnerships with the private sector. It’s encouraging to see accelerator programs like this playing a crucial role in helping businesses invest and grow, and these figures show optimism for our startup sector.”
One success story from the NatWest accelerator program is Foudys, an online retailer specializing in women’s football merchandise. Helen Hardy founded Foudys in 2020, and after joining the NatWest Accelerator in Manchester, she secured her first round of investment and landed a contract with Nike.
Helen shared her experience: “Being an entrepreneur is like being an elite sportsperson—it requires immense mental resilience. Having people around who encourage you to pursue your goals is vital. The belief NatWest had in me gave me a huge confidence boost. My mentor at NatWest helped me prepare for investment, and with their support, I was able to pitch successfully to investors.”
Henry Whorwood, Managing Director at Beauhurst, noted, “Certain aspects of the economy are thriving. UK entrepreneurs are still launching numerous new businesses, potentially signaling a new normal with higher rates of entrepreneurship in the UK than ever before.
