Statistics Every UK Start-up Entrepreneur Should Know in 2023 — UNBXD

The world of start-ups is fast-paced and evolves quickly. If you’re a start-up entrepreneur or about to be, you don’t have time to trawl the internet looking for statistics relevant to your business to help shape your plans.

The bad news is that a quick Google search for start-up statistics yields many US-based results. Very useful if you’re launching your business in Los Angeles, not so much when you’re in London.

The good news is that we’ve done the leg-work for you: keep reading to learn 24 up-to-date, UK-based statistics about the crazy world of start-up business.

What is a start-up?

Stripped back and put literally, a start-up is a new, emerging business, formed to fill a perceived gap in the market.

Whilst there’s no single definition of which new businesses are considered to be start-ups, it’s generally accepted that start-ups are designed to grow, and grow fast, with an innovative idea which can be marketed globally.

New businesses with limited growth potential in terms of customer base, revenue or product, aren’t generally considered to be start-ups. This includes companies running on an established business model, such as a new restaurant or salon. Start-up culture is all about experimentation, innovation, risk-taking and quick decision-making and problem-solving.

Start-ups are born into a competitive landscape, where risks can reap huge rewards, but can also lead companies to failure. Knowing the mistakes of those who have gone before you, as well as what the best start-ups are doing right, is your first step to success!

How many start-ups are there in the UK?

In 2021 - 2022, there were 753,168 new businesses launched in the UK.
This is the second highest number ever, second to 2020 - 2021 which had 810,310 new businesses!
That’s about 15 new companies every 10 minutes… so what is going to make you different?

How many start-ups succeed or fail in the UK?

Research from Beauhurst shows that around one quarter of start-ups in the UK manage to progress past the seed/existence stage of the company life cycle.
Meanwhile, 20% of startups fail within 5 years, without ever progressing.
Less than 1% of startups progress and then fail, highlighting the importance of progression in the first few years of life.
More than 90% of startups born each year survive at least one year, 75% survive two years, and just over 50% survive three years.
Northern Ireland is the region with the highest five-year survival rate of 47.3%, whilst the East of England has the lowest at 33.9%.

Why do start-ups fail?

Research from CB Insights found that 38% of failed start-ups failed when they ran out of money.
Meanwhile, 35% failed due to a lack of demand…
and 20% claim they were outcompeted.
5% say they failed due to burnout and a lack of passion in the project, so make sure you don’t sacrifice your wellbeing!

Unicorn companies are those which have reached a value of over $1 billion and are still privately-owned. How many start-ups reach this stage in the UK?

As of Sep 2022, there were 44 unicorn companies in the UK.
UK unicorns include Monzo, Deliveroo, GymShark and Depop.
74% of the UK’s unicorn companies are London-based.
On average, it takes UK companies about 7 years to become unicorns,
but this shrinks to just 4.5 years for digital security companies.
Just 6% of unicorn companies are founded by women.
One in three UK unicorns made at least one acquisition prior to reaching $1 billion

Which industries have the most successful start-ups in the UK?

Nearly half of all UK unicorn companies operate in the fintech sector.
Other sectors with unicorn companies in the UK include healthtech, gaming, e-commerce and food.
The services-on-demand sector is the UK’s fastest-growing, with a 75% growth in investment rounds in 2021.
Other fast-growing technology sectors include Edtech, proptech, alternative finance and gamification, making these some of the most attractive sectors to launch a start-up in right now.