Half a million small businesses disappear since pandemic as UK faces challenging economic conditions

The sharp decline has largely been driven by an exodus of self-employed individuals and one-person companies, particularly consultants, whose numbers have collapsed by 11% over the past five years.

Tina McKenzie, policy chair at the Federation of Small Businesses, expressed concern over the 'disappointing' figures, calling for a renewed focus on fostering economic growth and promoting an entrepreneurial culture.

The total number of private sector businesses fell by 56,000 to 5.5 million in the year leading up to 2024, marking a total decline of 500,000 businesses.

Despite the challenging conditions, the number of businesses with employees has actually grown between 2020 and 2024, with large businesses, particularly those employing more than 250 people, recording the fastest rate of growth.

Read at Business Matters