Number of new UK startups grows 4.5% despite downturn

New startups Image credit: Ingus Kruklitis via Shutterstock

Despite the difficult financial conditions faced in the country, the number of UK startups launched last year increased by 4.5%, according to research.

The Centre for Entrepreneurs’ most recent Business Startup Index found that almost 800,000 new startups were founded in the UK in 2022, following on from the momentum the startup community found during the pandemic years.

The 2022 figures, which are based on Companies House data, aren’t just a sign of Covid-19 recovery either. Last year represented a 16% increase from the number of new startups launched in 2019.

The growth in new companies hasn’t been entirely consistent across the UK, with Northern Ireland’s new business registrations falling slightly. London remains the top destination for the number of startups, despite encouraging signs of tech growth in other regions.

The findings noted that the ecommerce and health tech sectors saw some of the biggest increases in the number of new businesses, likely due to online shopping and digital health habits that accelerated during the pandemic.

Looking specifically at tech, the number of new businesses is even more impressive. Separate data published earlier this year, also taken from Companies House but analysed by RSM UK, found that the number of tech companies incorporated in the UK increased by 22% in 2022.

It found that 46,474 tech companies were incorporated last year, up from 38,240 in 2021, and 23,531 in 2020.