The number of businesses in the UK at the start of 2026 was 104,000 down on the beginning of 2025.
According to official data from the Department for Business, Innovation, Science and Trade, self-employed people not registered for VAT and businesses without employees decreasing by 157,000 drove the decline. There were 54,000 more businesses with employees.
There are now 5.58 million businesses in the UK which, despite an uplift in 2025 to 5.69 million firms, continues the downward trend since 2020 when there were 5.98 million businesses.
Small businesses with 0 to 49 employees make up 99.15% of the total business population, with 1.5 million (26%) having employees and 4.1 million (74%) employing no-one apart from the owners.
The UK’s 39,220 medium-sized businesses with 50 to 249 staff represent 0.70% of the total, and 8,355 (0.15%) are large companies employing 250 or more people.
With 17 million people, SMEs account for 60% of the UK’s total employment, while turnover is an estimated £2.78 trillion (50%).
In England, there are 4.9 million businesses in England compared to 359,000 in Scotland, 196,000 in Wales, and 129,000 in Northern Ireland
London (1.01 million) and the South East of England (864,000) are home to the most businesses, with the North East (163,000) accounting for the fewest private sector of the English regions.
