Key findings
- NatWest Group and Beauhurst’s New Startup Index reveals strong regional growth in new business formations.
- 426,000 new companies incorporated in H1 2025, marking a broad-based recovery.
- North East leads with over 10,000 new startups – a 19% rise from H2 2024.
Latest data reveals a rise in new startups across the UK, with the North East leading the charge
The first half of 2025 has shown that the UK’s entrepreneurial spirit is not only alive but accelerating. NatWest Group and Beauhurst’s latest New Startup Index (H1 2025) illustrates that with over 426,000 new companies established – up from 378,000 in the second half of 2024 – the UK’s potential for growth and innovation is clear.
What’s particularly encouraging is that this momentum is not confined to London. Regions such as the North East, Scotland, and the West Midlands have seen the fastest growth compared with H2 2024, underscoring the strength and ambition of founders across the country.
Application software and hospitality sectors are at the forefront of H1’s entrepreneurial resurgence
We’ve also seen particular progress in key sectors. The application software sector led the way in H1 2025, with 34,700 new companies incorporated. As a dynamic segment of the tech industry, this sector encompasses the development of programmes and apps for work, entertainment, communication, and data management purposes.
Companies operating in this sector include those building productivity tools like word processors and spreadsheets, creative software for graphic design and music production, and entertainment software for video games. Notably, mobile app developers also represent a significant portion of this growth, developing a wide range of smartphone apps, from fitness trackers to shopping platforms and everything in between that shapes modern daily life.
Hospitality ranked second, with 26,800 new restaurants, pubs, cafés, and takeaways opening nationwide, reflecting an 8.5% increase from the same period last year. This was closely followed by the property development and construction sector which saw a 7.18% increase in startups, totalling 25,100.
Opportunities for support and funding through NatWest’s Accelerator programme
Entrepreneurs and startups are vital to our economy. They bring fresh ideas, create high-growth, high-productivity businesses, and drive regional prosperity. At NatWest Group, we’re proud to be Britain’s biggest bank for business, supporting 1 million business customers and holding over 18% share of the startup market. Our unmatched regional presence means we’re uniquely positioned to help founders access the capital and partnerships they need to thrive.
That’s why we launched the NatWest Accelerator programme a decade ago. Since then, our 12 hubs have supported over 10,000 businesses, created 12,000 jobs, and driven £700 million in investment.
Accelerator alumni record 35% higher average turnover growth than comparable peers, and are more likely to survive the make-or-break early years. Just as important, half of our Accelerator participants are women, a fifth come from ethnic minority backgrounds, and three-quarters are based outside London and the southeast. Talent is everywhere, and support must be as well.
NatWest offers entrepreneurs other targeted programmes and innovative partnerships
Building on this success, in March we announced that we are raising our ambitions with another 10,000 entrepreneurs joining the Accelerator programme this year and launched a £1 million competition for small business owners and entrepreneurs to win a share of funding to fuel growth.
The NatWest Accelerator app went live as part of our 10th anniversary celebrations, providing a centralised digital community and a range of support tools to further help founders connect, learn and grow.
We’re also expanding our reach by working with universities to focus on turning world-class research into world-class companies, and recently announced a new partnership with Google Cloud, bringing AI tools and expert training to the next generation of founders on our Accelerator programme.
Our app, Mettle by NatWest, has been designed with small business owners in mind, providing free mobile-based business bank accounts to sole traders and small companies, ensuring they have the resources to effectively manage their finances.
At NatWest Group, we’re proud to be helping more businesses get started than any other bank and will continue to nurture these new startups across the country, as we know that when small businesses succeed, so does the UK.