A Fresh Start for UK Businesses. With the new financial year underway, many companies are setting new goals, reviewing past successes, and planning for the future. It’s a great time to start fresh and make new plans.
That’s why we’re excited to share the DataGardener May 2025 Business Insights Report—a concise roundup of the latest business trends, registrations, dissolutions, and market signals from across the UK.
Business Overview Snapshot – May 2025
May saw a significant amount of activity across the UK business landscape. Here’s a quick look at the key stats from the month:
These numbers reflect a dynamic and fast-moving start to the financial year, with signs of growth and challenges ahead.
Business Start-ups & Closures
New Company Formations – May vs April 2025
In May 2025, 60K+ new companies were registered across the UK. While this marks a decrease from 68K+ registrations in April, the figures still reflect a strong appetite for entrepreneurship and business innovation as the new financial year begins.
This trend indicates that, although slightly lower than earlier in the year, business formation remains robust, suggesting sustained confidence and market activity among new founders.
Company Dissolutions Decline in May
Not all business trends are moving upward, but there’s good news here. In May 2025, 56K+ companies were dissolved, marking a notable 31% decrease from 81K+ dissolutions in April.
This drop suggests a potential shift in business sentiment, with fewer companies choosing to close as the new financial year begins. While many dissolutions traditionally occur at year-end (April), the sharp decline in May could reflect improving stability or companies delaying closure decisions amid market uncertainty.
How Many Businesses Were Incorporated in the UK?
May 2025 vs April 2025
In May 2025, 60K+ new companies were incorporated, marking a decrease of 11.76% compared to April 2025, when 68K+ companies were incorporated.
Regional Distribution
The regional distribution of companies across the UK presents a diverse economic landscape. London stands out as the commercial heart, hosting 47K+ companies, 34.09% 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 13K+ companies making up 10.03% of the total, indicating a substantial economic presence.
On the lower end, Wales and Northern Ireland have the smallest numbers, with 2.6K+ (2.03%) and 1.7K+ (1.33%) companies, pointing to a more modest business density in these areas.
New Companies Registered in May 2025
Industrial Distribution
Top 10 Highest Registered Industries in May 2025
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 19.54% of registered companies, followed by Real Estate Activities and Professional, Scientific, and Technical Activities, both of 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 regulatory requirements, providing critical insights for risk management and identifying market opportunities.
Risk Assessment of Companies Incorporated
April 2025 to May 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 98.63% 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 1.18%, 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 0.02%, 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.
Private Sector Business Data Overview
May 2025 vs April 2025
In May 2025, 59K+ new private sector companies were incorporated, reflecting an 11.66% decrease compared to April 2025, which saw 67K+ new incorporations.
Regional Distribution of Private Sector Companies Incorporated
The regional distribution of new business incorporations reveals interesting trends across the UK. Here’s how the numbers compare:
Key Regional Insights
- London had the most new companies in May 2025, making up 34.58% of all new businesses. This represents a slight increase from 33.84% in April, indicating that London remains the top place to start a business.
- The South East (10.29%) and North West (10.06%) also performed well, with numbers similar to those in April.
- The West Midlands (8.36%) and East of England (7.75%) stayed steady. Yorkshire and the Humber (5.78%) and Scotland (4.88%) had small drops in new companies.
- The “Others” group, which encompasses all other regions, accounted for 15.10% of new companies in May, slightly lower than 15.90% in April.
Top SIC Industry Classifications of Newly Incorporated Companies in the Private Sector
The table below provides an overview of the private sector industries leading business incorporations across the UK in May 2025:
Industry Insights
In May 2025, most new businesses were established in the Wholesale and Retail Trade sector, accounting for 19.77% of all new companies. This is a bit less than 21.2% in April.
Real Estate (10.54%) and Professional, Scientific and Technical Services (9.68%) were also popular, but both saw small drops from April.
Information and Communication (7.84%) and Construction (7.83%) remained steady, indicating continued interest in technology and building work. Accommodation and Food Services accounted for 7.11%, with only a slight change from April. Admin and Support Services decreased slightly to 6.6%, and Financial Services also declined slightly to 3.53%.
One big change: the “Other” industries group grew from 13.55% in April to 18.88% in May. This means more new companies are being started in a wide range of different industries. Overall, the data shows that people are starting businesses in many areas, not just the usual ones, indicating how UK businesses are evolving and expanding.
Comparative Data
Charges Registered May 2025 vs April 2025
In May 2025, 10K+ outstanding charges were registered, decreasing from the 13K+ charges registered in April 2025.
Regional Distribution
County Court Judgements (CCJs) Filed in MAY 2025 Vs April 2025
In May 2025, 8K+ CCJs were filed, which is lower than the 13K+ CCJs filed in April 2025.
Regional Distribution
Female Founders
In May 2025, over 7K new companies were registered as owned by females, a significant decline from the 9K+ companies registered in April 2025.
Female-Owned Businesses: Industry & Regional Insights – May 2025
Top 3 Industries for Female-Owned Businesses
Top 3 Regions for Female-Owned Businesses
Note: Data sourced from DataGardener’s May 2025 UK Business Insights report. For more detailed analysis and insights, contact us.