UK start-up boom hits record high, led by women and minority groups

A new report reveals that more than a third of the UK's working-age population is now engaged in entrepreneurship, marking the highest level of activity since records began.

The surge is led by a dramatic increase in women starting businesses, though significant systemic challenges remain.

The UK's entrepreneurial landscape is more dynamic than ever, with 36 per cent of working-age adults either running a new business or planning to start one within three years, according to the latest Global Entrepreneurship Monitor (GEM) UK report. This is the highest rate recorded since the survey began in 1999.

UK entrepreneurship is on the rise

The 2024 study, produced by Warwick Business School in partnership with NatWest, highlights a remarkable transformation in who is starting businesses. Early-stage entrepreneurial activity among women has tripled since 2002, rising from just over 3.5 per cent to 10 per cent this year.

Furthermore, immigrants and ethnic minorities continue to be the most entrepreneurial groups in the UK. The rate of early-stage business activity within the non-white population stands at 19.1 per cent, nearly double the rate of 10.4 per cent within the white population.

This record-breaking entrepreneurial energy comes against a challenging backdrop of geopolitical uncertainty, a cost-of-living crisis, and a slow-growth economy, making the resilience of small businesses "inspiring and critical to the UK's economic stability," the report notes.

AI emerges as cornerstone for future growth

A key trend identified for the future is the rapid adoption of artificial intelligence. The report finds that AI is quickly becoming integral to modern start-ups, with 29 per cent of early-stage entrepreneurs already deeming it "very important" to their daily operations. This optimism is expected to grow, with 72 per cent of respondents believing AI will be "somewhat" or "very important" to their business within the next three years.

This confidence is even stronger among entrepreneurs with ambitions for growth and job creation, who see AI as a transformative tool for innovation and scaling their operations.

Progress hampered by persistent challenges

Despite the surge in start-up creation, the report warns that weaknesses are hampering this progress in the UK's entrepreneurial ecosystem. Entrepreneurs reported significant barriers, including difficult access to finance, insufficient Government business support policies, and often a lack of physical infrastructure.

Mark Hart, Professor of Entrepreneurship and Enterprise Policy at Warwick Business School leading the GEM UK team, commented on the Government's recent plan for small and medium-sized enterprises (SMEs), published in July 2025.

"With its emphasis on addressing late payments, leadership skills, innovation, digital transformation and a sustainable route to net zero, the agenda is to be welcomed. Implementation will be key," he said.

Professor Hart added: "Perhaps we will get to a point not too distant in the future when the UK can transform its impressive record for launching start-ups into longer-term success stories."

Echoing the call for action, Darren Pirie, Head of NatWest Accelerator, said: "This report does more than illuminate the big trends: it's a much-needed call to action to build an environment where every entrepreneur and growing business has the tools, confidence and support to succeed."

The findings are based on a survey of 8,229 UK adults aged 18 to 80, conducted in 2024.

Further reading:

Regulating AI use could stop its rampant energy demand

Four strategies to drive innovation in your organisation

Will the Government's Small Business Plan deliver for SMEs?

How to overcome fear of failure and foster innovation

Mark Hart is Professor of Entrepreneurship and Enterprise Policy at Warwick Business School and Deputy Director of the Enterprise Research Centre.

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