22 APR 2025 
10 MIN READ
The UK is bursting with entrepreneurial spirit and savvy business minds, evidenced by the steady rise in new businesses starting each year. At AXA, we’ve witnessed this surge in startup activity firsthand, with over 10,962 new UK businesses joining us in the past year alone.
To better understand the new businesses that have joined us, we analysed anonymised internal AXA data covering the period from January to December 2024. This analysis has allowed us to identify the most popular startup industries, the regions with the highest entrepreneurial activity, and the various levels of support available in each area.
The UK business landscape
The UK’s top common occupations:
1. Cleaning services
2. Business consultancy
3. Management consultancy
4. Builder
5. Electrical contractor
Cleaning services dominate new UK businesses
According to the British Cleaning Council, the number of cleaning businesses in the UK has risen by 3% over the past year, reaching a total of 75,565. This industry has made quite a splash, ranking among the the most popular sectors in the country.
Several factors may have contributed to this level of growth:
1
Changing attitude towards cleanliness
Since the COVID-19 pandemic, attitudes towards cleanliness and hygiene have shifted significantly. A survey conducted by Harrison Wipes found that 91% of respondents are now more mindful of the cleaning measures implemented in public spaces. This heightened awareness of hygiene has likely driven the increased demand for professional cleaning services, as individuals and businesses prioritise safer, cleaner environments.
2
Affordability
Compared to other industries, cleaning services require relatively low startup costs. As a cleaner, you’ll typically work at client premises, eliminating the need for dedicated office space or a storefront. Since there’s no product to sell, you won’t incur upfront inventory costs. This means your general overheads will be significantly lower than those of businesses that require premises and stock. Ultimately, all you need to get started as a cleaner are the right supplies, reliable transport, and the right insurance for your protection.
3
Flexibility
As your own boss, you’re not tied to a standard 9 to 5 schedule. This flexibility allows you to choose your working hours and design a schedule that suits your lifestyle. A recent survey by the Lawrence Dean recruitment group revealed that a remarkable 80% of respondents identified flexible working as a top priority. As a cleaner, you can take on clients whose schedules align with yours, which makes it easier to balance work and personal commitments.
4
Accessibility
With no specific qualifications or requirements needed to become a cleaner, there’s a low barrier to entry. This accessibility makes the cleaning industry an attractive option for entrepreneurs without industry-specific degrees or certifications.
If you’re considering starting your own cleaning company but aren’t sure where to begin, our handy guide can help you get started.
Growth in business consultancy
According to the Management Consultancies Association, the UK consulting market has nearly doubled in size since 2018. With approximately 600,000 new business registrations each year, there is a clear opportunity to provide expert advice and consultation to these startups in their early stages. As businesses grow and evolve, they face new challenges driven by shifting geopolitics, supply chain disruptions, and unprecedented levels of inflation, which further fuels the demand for specialised consultancy services.
Taking the first step toward becoming your own boss can feel daunting, but our business consultancy guide is here to support you.
The rise of construction startups
Building and construction came second in the list of the UK’s most common business types, which could be explained by a couple of factors.
Increased demand
Scottish Construction Now reports that the demand for construction services is the highest it’s been in two years. With homeowners looking to improve their existing space and properties, contractors are experiencing a significant increase in opportunities for new projects.
Improved interest and mortgage rates
Lower interest and mortgage rates have also led to greater demand for those in the construction industry. These reduced rates make borrowing more affordable, allowing more individuals and businesses to invest in construction and property development.
The UK’s most entrepreneurial regions
By comparing the number of new businesses over the past year to the populations of each region, we’ve identified the most business-minded areas in the UK.
Available support in the regions
The support available in each region plays a vital role in encouraging entrepreneurs. Access to business support schemes and government-funded workshops provides essential guidance for those aspiring to become their own bosses. For instance, regions with robust support networks often see higher rates of business success, as these resources help entrepreneurs navigate challenges and seize opportunities.
Midlands
The Midlands boasts the highest number of support schemes, offering over 100 fully funded government programs designed to assist small businesses. Available in cities like Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall, and Wolverhampton, these schemes provide valuable guidance on a wide range of topics, including starting a business, management, funding, innovation, and growth. With this level of support, entrepreneurs in the Midlands are well-equipped to navigate the challenges of launching and running their businesses.
London and the surrounding areas
Greater London takes the top spot for having the highest number of new business startups, likely due to the robust industry-specific support available in the area. According to a report by Dojo examining which UK councils offer the most support to small businesses, a significant number of these startups are concentrated in the South of England. This high level of funding and support likely explains why two of the top-ranking locations are situated in this region.
If you’re interested in discovering more about the available support in your area, GOV.UK provides a comprehensive list of financial and support services to help you get your business off the ground.
While the presence of support services can significantly impact local business activity, it’s just one piece of the puzzle. It’s important to recognise that other factors, such as economic conditions, market demand, and community resources, also play a crucial role in shaping a region’s entrepreneurial landscape.
Entrepreneurial postcode hotspots
By comparing the number of new businesses with the area’s population, we identified the most entrepreneurial postcodes in the UK:
London (this includes all London boroughs)
Lancaster
Edinburgh
Aberdeen
Outer Hebrides
It’s important to note that this analysis is based solely on the number of new businesses and population size. Other factors may contribute to the number of new businesses in these areas.
New business boom
London
Known for its lively culture and diverse population, it’s no surprise that the top spots for business activity include postcodes close to The City of London. Organisations like Grow London Local offer free support to local businesses through various programs, webinars, and events. Their web directory highlights the resources available across Central, East, West, and South London, with Central London providing the largest selection of support to help entrepreneurs thrive.
Lancaster
Lancaster’s Business Growth Hub, Boost, offers funded support for businesses in the region looking to start, grow, and scale. Since launching in 2013, Boost has assisted over 14,000 businesses and contributed more than £100 million to the local economy.
Edinburgh
In terms of available support, technology platform Vestd reported that Edinburgh businesses secured 2.7% of UK funding rounds between the first and second quarters of 2024. This level of financial backing, coupled with the city’s large student population, may play a significant role in driving Edinburgh’s thriving business economy. With a vibrant mix of innovation and academic talent, Edinburgh is positioned as an exciting hub for aspiring entrepreneurs.
Aberdeen
Aberdeen City Council launched the Union Street Empty Shops Action Plan in 2024, providing grants to help new businesses establish themselves on the high street. By offering up to 50% of the funding needed to renovate vacant shops on Union Street, this initiative aims to address the issue of empty storefronts while fostering new business startups and supporting entrepreneurs. Since its launch, the plan has already helped 10 new businesses open.
Additionally, Scottish Business News recently reported that Edinburgh and Aberdeen rank among the top 10 UK cities to start a business. This research considered factors such as the average cost per square foot of commercial space, internet connectivity, business closures, and overall index scores. This recognition highlights that these cities provide favourable conditions, including reasonable commercial space costs and strong internet infrastructure, which can significantly aid startup success.
The Hebrides
The Outer Hebrides Business Development Scheme, Outer Hebrides Digital Support Scheme, and Outer Hebrides Young Enterprise Support Scheme all offer valuable funding for new businesses in the region. A report from July 2024 indicated that businesses supported by Highlands and Islands Enterprise (HIE) are projected to create or retain 26 jobs, showcasing the positive impact of these initiatives. This funding will facilitate a variety of projects, promoting economic growth and fostering business diversification in the area, making the Outer Hebrides an increasingly attractive destination for entrepreneurs.
Unlocking success: support and resources for small businesses
Starting a small business can be challenging, so it’s essential to know what support is available to you. To help you on your journey, we’ve compiled a list of valuable organisations that specialise in assisting new businesses during their early stages and beyond. From funding options to mentorship programs, these resources can provide the guidance you need to thrive:
This site offers a comprehensive list of business finance support options available throughout the UK.
This site offers a comprehensive list of business finance support options available throughout the UK.
Most local authorities have a Chamber of Commerce, serving as a valuable networking platform for new entrepreneurs.
Management Essentials: A free online course designed to help business owners learn how to grow and develop their businesses.
Helplines available across the UK where you can ask questions over the phone or online.
Support services tailored for businesses in England.
A directory featuring 187 local support programs available in Northern Ireland.
An organisation focused on providing information, guidance, and support for businesses in Wales.
If you’re ready to start your journey as your own boss, we offer tailored advice to help you get started, including the important step of protecting your business with the right insurance coverage. You can find more information specific to your industry here:
Protect what matters with AXA
Do a little thing today that can make a big difference for your business tomorrow. Get AXA Business Insurance and ensure your peace of mind.
All links are checked and valid at time of publishing, 22 April 2025.