How many small businesses and limited companies are there in the UK? (2025)

Small businesses form the beating heart of the UK economy. The latest official government data shows that 99.8% of all UK businesses are small and medium sized enterprises. Whether you are in construction, tech, or retail, small enterprises power every industry sector.

Here we drill down into the data to learn more about the UK’s small businesses and limited companies.

How many small businesses are there?

• At the start of 2024 there were an estimated 5.5 million private sector businesses in the UK.
• SMEs account for 99.8% of the total business population.
• The UK business population comprised 3.1 million sole proprietorships, 2.1 million actively trading companies and 356,000 ordinary partnerships.
• The total peaked at around 6.0 million in early 2020, before falling slightly and stabilising.

How many limited companies are there?

Two official sources measure companies in different ways, which is where confusion often arises:

• Actively trading companies in the private sector are counted in the government’s Business Population Estimates. At the start of 2024 there were about 2.1 million companies trading.
• All registered companies are counted by Companies House. The total register was 5,350,759 at 31 March 2024 and 5,427,787 at 31 March 2025. The effective register removes companies in the process of dissolution or liquidation and was 4,876,374 at March 2024 and 4,872,293 at March 2025.

Not all registered companies are trading

The Companies House total includes dormant and holding companies, plus those being dissolved. It is much higher than the number of companies that are actually trading. If you want the best guide to live trading companies, use the Business Population Estimates figure of around 2.1 million at the start of 2024, and use the Companies House effective register when quoting register totals.

How many one person businesses are there?

• At the start of 2024, 74% of UK private sector businesses did not employ anyone aside from the owner.
• This group comprised 2.9 million sole proprietorships, 920,000 companies and 270,000 partnerships with no employees.

Do small business numbers vary between regions?

• London and the South East have the highest number of private sector businesses. At the start of 2024 London had around 983,000 businesses and the South East around 907,000.
• England accounted for 4.79 million businesses, Scotland 355,000, Wales 220,000 and Northern Ireland 133,000.

Which industries have the most small businesses?

• SMEs operate in every sector, but some industries dominate. Construction has the largest number of SMEs with around 870,000 businesses, about 16% of the total.
• Professional, scientific and technical activities account for roughly 14%, and wholesale and retail trade and repair account for around 10%. Mining, quarrying and utilities is less than 1%.

What about employment and turnover?

• Employment: SMEs employ 16.6 million people, around 60% of total private sector employment. Small businesses with 0 to 49 employees account for 13.0 million jobs.
• Turnover: SMEs generate about £2.8 trillion per year, around 52% of total private sector turnover.

Why have the numbers changed over time?

The SME population rose strongly from 2010 to 2020, dipped during the pandemic period, and has since stabilised. Non employing businesses explain most of the change. Other drivers include tax and regulation, the growth of the gig economy, and sector specific trends such as property related incorporations in the mid 2010s.
Sources: Business Population Estimates 2024 and Companies House Companies Register Activities 2024 to 2025