As we enter 2025, DataGardener’s Business Insights Report highlights key trends in the UK business landscape. January UK Business Insights reveals optimism about creating new businesses alongside ongoing challenges for existing ones. This report provides a snapshot of the evolving environment, helping business owners, investors, and professionals navigate the year ahead.
Business Overview
- New Businesses Incorporated: January has seen a strong wave of entrepreneurial activity, with more than 63K new businesses registered across the UK. This surge demonstrates growing confidence and innovation as businesses are created to meet new market demands.
- County Court Judgments (CCJs) Filed: Despite the positive new business growth, the first month of 2025 also saw over 10K County Court Judgments (CCJs) filed. This reflects some businesses’ ongoing financial challenges, highlighting the importance of economic resilience and sound business management.
- Charges Registered: January also witnessed 9K+ charges being registered against businesses, pointing to the continued pressure businesses may face with legal or financial obligations.
These figures highlight a dynamic and evolving business environment, offering a valuable snapshot of how the UK economy is shaping up as we enter the new year. Stay informed and explore the full report to learn more.
Business Start-ups & Closures
Business Incorporated
January 2025 saw an impressive surge in entrepreneurial activity, with over 63K new businesses being registered. This marks a notable rise from the 50K+ registrations in December 2024. This uptick in start-ups suggests a wave of optimism and new ventures as businesses look to capitalise on the opportunities the new year brings.
Business Dissolutions
In contrast, company dissolutions sharply declined in January 2025, with over 62K businesses closing their doors. This represents a significant drop from the 81K+ dissolutions recorded in December 2024. The decrease in closures reflects an overall improvement in business stability, with fewer companies facing the need to wind down despite the increase in new registrations. Factors such as a more resilient economy and shift in business operations may contribute to this positive trend.
Private Sector Business Data Overview
January 2025 vs. December 2024
In January 2025, 62K+ new private sector companies were incorporated, reflecting a 27.0% increase compared to December 2024, which saw 49K+ new incorporations.
Regional Distribution of Private Sector Companies Incorporated
London Remains on Top, But Other Regions Are Gaining Ground
London continues to lead the charge, making up 34.17% of new businesses. However, its share has slightly dipped from 35.74%, highlighting the rise of business activity in other regions across the UK.
Regional Powerhouses on the Rise
- North East: An impressive 47% growth (1,535 vs. 1,044)
- North West: Up by 29% (6,296 vs. 4,891)
- South East: Saw a 33% increase (6,537 vs 4,898)
- The East of England and Yorkshire also saw notable boosts, underscoring the growing business opportunities beyond London.
Steady Growth in Key Regions
Scotland, Northern Ireland, and Wales showed only slight changes, indicating that business activity remains stable and consistent.
What This Means for the UK Economy
This surge in new businesses reflects entrepreneurial confidence, potential government support, and a broader shift towards decentralised growth across the UK. The future looks bright for companies outside London as more regions tap into new opportunities.
Top SIC Industry Classifications of Newly Incorporated
January 2025 Sector Highlights: Growth and Shifts Across Industries
In January, the Wholesale & Retail Trade sector remained the largest, making up 20.10% of new businesses, though slightly down from December. Real Estate and Professional Services also saw slight declines, while Construction surged, growing from 7.58% to 8.09%.
Accommodation & Food Services and Administrative Services held steady, while Information & Communication dropped. Health & Social Work and Financial Services also saw a decline.
Smaller sectors like Manufacturing and Education remained stable, while industries like Agriculture and Mining showed limited growth.
In summary, construction and accommodation are rising, while traditional sectors like retail and financial services are facing modest changes. The UK’s business landscape is evolving, with exciting opportunities emerging in newer industries.
Comparative Data
Companies Incorporated January 2025 vs December 2024
In January 2025, 63K+ new companies were incorporated, marking an increase of 20.7% compared to December 2024, when 50K+ companies were registered.
Regional Distribution of Companies Incorporated January 2025 Vs December 2024
The regional distribution of companies across the UK presents a diverse economic landscape. London stands out as the commercial heart, hosting 39K+ companies, 34.68% of the total. This is a significant lead over other regions, reflecting London’s status as a business hub.
The South East also plays a significant role, with 11K+ companies making up 10.16% of the total, indicating a substantial economic presence.
On the lower end, Wales and Northern Ireland have the most minor numbers, with 2K+ (1.83%) and 1.6K+ (1.41%) companies, pointing to a more modest business density in these areas.
Risk Assessment of Companies Incorporated December 2024 to January 2025
The assessment of company risk profiles reveals a varied landscape within the region’s business sector.
In the business risk landscape, most companies are positioned in the moderate-risk category, with 98.59% demonstrating a balanced approach to risk management. This significant proportion indicates a preference for stability and calculated risk-taking in business operations.
Very high-risk entities comprise 1.22%, while high-risk companies constitute 0.18%. These figures represent businesses that may engage in high-stakes ventures, necessitating sophisticated risk mitigation strategies.
On the safer end of the spectrum, very low-risk companies account for a mere 0.01%, reflecting a cautious stance in the market.
The distribution of risk underscores the importance of tailored risk management practices for effectively navigating the complexities of the business world.
Charges Registered January 2025 vs December 2024
In January 2025, 9K+ outstanding charges were registered, decreasing from the 13K+ charges registered in December 2024.
County Court Judgements (CCJs) Filed in January 2025 Vs December 2024
In January 2025, 10K+ CCJs were filed, which is greater than the 6K+ CCJs filed in December 2024.
New Companies Registered in January 2025
Industrial Distribution
The analysis of the Standard Industrial Classification reveals a diverse array of industries, each contributing to the overall landscape of the company registered.
The Wholesale/Retail Trade sector leads with 19.86% of registered companies, followed by Real Estate Activities and Professional, scientific, and Technical Activities, which account for over 9-10% of registered companies.
Construction and Information/Communication also have a notable share, each around 7-8%.
This data suggests that these sectors are more likely to register companies due to their operational scale and regulations, providing critical insights for risk management and market opportunity identification.
Female Founders
In January 2025 and December 2024, over 8K new companies were registered each month, owned by females, showing no significant difference between the two months.
Female-Owned Businesses: Industry & Regional Insights – January 2025
Top 3 Industries for Female-Owned Businesses
January 2025 reveals a strong presence of female entrepreneurs across various sectors, with notable leadership in the following industries:
- Wholesale and Retail Trade: With 1.8K+ businesses, this sector leads female entrepreneurship, accounting for 21.94% of all female-owned companies. The industry remains a key area for women in business, offering opportunities in traditional retail and emerging e-commerce markets.
- Professional, Scientific and Technical Activities: Home to 1K+ businesses (12.36%), this industry continues to grow as women break into traditionally male-dominated fields such as engineering, technology, and consultancy.
- Real Estate Activities: With 700+ businesses (8.89%), real estate stands out as another significant area for female entrepreneurs, especially with the rise of women in property management, development, and investment.
Top 3 Regions for Female-Owned Businesses
The regional distribution of female-owned businesses shows a clear trend towards urban hubs and economically diverse areas:
- London: With 2.8K+ businesses (33.72%), London remains the epicentre of female entrepreneurship. The city offers vast opportunities in finance, tech, and creative industries, making it a hotspot for women looking to start or scale their businesses.
- South East: The South East follows with 900+ businesses (10.73%), reflecting its growing economic importance and the increasing number of women-led enterprises in retail, healthcare, and professional services.
- North West: With 800+ businesses (9.60%), the North West continues to rise as a key region for female entrepreneurs, supported by a strong local economy and a thriving network for women in business.
Note: Data sourced from DataGardener’s January 2025 UK Business Insights report. For more detailed analysis and insights, Contact us.