"This 3.5% increase, equating to 191,000 new businesses since last year, is a testament to the resilience and entrepreneurial spirit driving our economy, and it is heartening to see so many individuals taking the initiative to establish their own ventures, but as chancellor Rachel Reeves recently said, the UK's economy "isn't broken, but it does feel stuck". Addressing this issue needs to be a priority for the survival of SMEs within turbulent market conditions."
"This trend suggests that many new enterprises may be starting without the immediate intention of hiring, or perhaps are opting for non-employing structures. The emergence of 4.27 million non-employing businesses raises important questions about income stability and long-term growth prospects; with only 1.42 million businesses employing any staff, it's crucial for entrepreneurs to consider how they might transition from self-employment to hiring."
Small businesses now total 5.68 million, representing 99.18% of the business population after a 3.5% increase (191,000 new businesses) year-on-year. Employing businesses declined by 9,000 to 1.42 million, while non-employing businesses reached 4.27 million. Many new enterprises may start without immediate intent to hire or may opt for non-employing structures, raising questions about income stability and long-term growth. Entrepreneurs need pathways to transition from self-employment to hiring through strong, sustainable business models that create UK-wide employment. SME concentration in Construction (885,000), Professional Services (819,000), and Retail creates both opportunities and sector-specific vulnerabilities.
Read at London Business News | Londonlovesbusiness.com
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