UK small business statistics 2025

Discover the number of small businesses in the UK and their average turnover.

Small businesses are an essential part of the business landscape, but the recent economic turmoil has threatened their survival. So, what is the current outlook? We explore the latest small business statistics in the UK, including the number of SMEs and how this varies between industries and regions.

We also look at how many new businesses survive the first 5 years, and ways you might improve your chances of success with the best business banking options, among other things.

UK small business statistics: Highlights

  • 99.8% of UK businesses are small or medium-sized enterprises (SMEs).
  • There are 5.5 million SMEs in the UK.
  • The average turnover for a UK SME is £501,240.
  • A quarter (26%) of UK SMEs are based in London and the South East.
  • SMEs contribute over half (52%) of private sector turnover in the UK.
  • SMEs account for three-fifths (60%) of employment in the UK.

How many SMEs are there in the UK?

The latest figures show there are 5.5 million small and medium-sized businesses (SMEs) operating in the UK. SMEs make up more than 99% of the total private sector business population, and the number of SMEs has increased over the last decade.

Over the last decade, the number of SMEs peaked at the start of 2020 and has declined slightly since then. This is likely due to increased challenges for UK businesses during the coronavirus pandemic and then the cost of living crisis.

However, SMEs have consistently made up the majority of private sector businesses in terms of numbers over the past decade, making up more than 99% of the total every year since 2013.

2014 5236390
2015 5382485
2016 5490470
2017 5687230
2018 5660000
2019 5860085
2020 5972685
2021 5583245
2022 5501260
2023 5547170
2024 5490740

What is the average turnover for a small business?

The average turnover for a UK small business (0-49 employees) is £334,800, considering there are 5.5 million small businesses contributing a turnover of £1.8 trillion.

The average turnover for an SME (0-249) is estimated to be £501,240, as there are 5.5 million SMEs in the UK, and they contribute a total of £2.8 trillion in turnover.

What is the difference between SMEs, small businesses and micro businesses?

The term SME refers to any business that is small or medium-sized. This includes the sub-categories of micro-business, small business and medium-sized businesses. Small businesses have 0-49 employees, while medium businesses have 50-249 employees.

Micro-businesses with 0-9 employees make up the majority of the SME population in the UK, with a total of 95.3%. Interestingly, three-quarters (74%) of SMEs are businesses with no employees. This category includes sole traders and partnerships without any other employees.

Business type Percentage
Micro (No employees) 73.82%
Micro (1-9 employees) 21.58%
Small (10-49 employees) 3.94%
Medium (50-249 employees) 0.65%

How much do SMEs contribute to the UK economy?

SMEs contribute over half (52%) of business turnover in the UK and account for three-fifths (60%) of employment in the private sector. UK SME turnover was £2.8 trillion in 2024, and SMEs employed 16.7 million people.

In the last decade, the turnover contributed by SMEs has increased every year except between 2021 and 2022. The number of SMEs also decreased in these years, likely due to the coronavirus pandemic, so it makes sense that the turnover would reduce along with this.

Year SME turnover (billions) Large business turnover (billions)
2014 1,647 1,874
2015 1,754 1,956
2016 1,825 2,036
2017 1,905 1,834
2018 1,994 1,868
2019 2,168 1,981
2020 2,270 2,076
2021 2,310 2,139
2022 2,124 2,032
2023 2,355 2,124
2024 2,752 2,520

A breakdown of UK SMEs by sector

The most popular sector for SMEs is construction, with over 872,000 businesses operating in this area. This is closely followed by professional, scientific and technical activities, with just over 755,000. This represents a decrease compared to 2023.

The sector with the lowest number of UK SMEs is production activities. The UK is not currently known to be a hub for production and is known to have a service-based economy, so it makes sense that a relatively low number of SMEs are operating in this area.

Sector Number of businesses
Construction 870,185
Professional, Scientific and Technical 754,940
Wholesale and Retail Trade 558,935
Administrative and Support Service 495,275
Other Service activities 367,490
Human Health and Social Work 355,805
Transportation and Storage 312,775
Information and Communication 337,945
Education 298,500
Arts, Entertainment and Recreation 280,405
Manufacturing 246,805
Accommodation and Food 246,805
Agriculture, Forestry and Fishing 147,845
Real estate 142,865
Financial and Insurance 86,140
Production 31,050

A breakdown of UK SMEs by region

Unsurprisingly, the majority of small businesses are based in London and the South East, and these 2 regions combined account for a quarter (26%) of all SMEs in the UK – almost 1.9 million businesses. Northern Ireland has the lowest number of SMEs at just 133,000, closely followed by Wales with 220,000. However, compared to 2023, this represents a slight increase in the presence of SMEs in Northern Ireland and Wales.

Region Number of SMEs 2024
London 982,905
South East 907,025
East of England 528,015
North West 495,235
South West 533,335
West Midlands 432,040
Yorkshire and the Humber 388,345
East Midlands 357,640
North East 166,140
Scotland 354,985
Wales 220,200
Northern Ireland 133,115

How many women-led SMEs are there?

In 2023, 15% of SMEs with employees were led by a woman or a majority-female management team. This has slightly decreased compared to the statistics in 2022 and 2021. Moreover, education (32%) and health (39%) remain among the sectors that are largely women-led.

How many minority ethnic group-led SMEs are there?

In 2023, just 7% of SMEs with employees in England were led by someone from a minority ethnic background (MEG) in comparison to the 6% in 2022. However, since 2015, there has not been much change in this figure.

The sectors with the highest percentage of MEG leaders were transport and storage (11%) or administration, education, finance and real state (9%).

Click here for more research. For all media enquiries, please contact –

Matt Mckenna
UK Head of Communications
T: +44 20 8191 8806

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