What the evidence means
The ONS birth rate is business births as a percentage of active enterprises on the Inter-Departmental Business Register.
Rate calculated from registered active enterprises.
G&G verified business evidence
UK business birth rate in 2024
The UK business birth rate was 11.1% in 2024.
11.1
percent
Original source
Office for National Statistics
Business demography, UK: 2024
ONS reports a UK business birth rate of 11.1% in 2024.
View original evidence
Office for National Statistics. Business demography, UK: 2024. 20th of November, 2025. https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/businessdemography/2024
Why this matters to UK SMEs
The birth rate indicates the flow of newly registered enterprises into the UK business population. Existing SMEs can use it as economic context, but it does not directly measure competitive pressure, entrepreneurial quality or the number of informal start-ups.
Key breakdowns
The UK business birth rate was 11.1% in 2024, slightly above 11.0% in 2023. There were approximately 317,000 births among 2.86 million active enterprises. The death rate was 9.8%, down from 10.8%, creating a 1.3 percentage-point gap between birth and death rates.
How to interpret this evidence
The birth rate is new IDBR enterprises as a percentage of active enterprises. It supports comparison across years and sectors but does not show survival, employment creation, turnover or innovation. Birth and death rates should be considered together.
Limitations
The measure is based on the Inter-Departmental Business Register and does not capture every unregistered sole trader or informal activity. Counts are rounded, 2024 death estimates are provisional and registration effects can influence timing. The national rate hides substantial sector and regional differences.
Practical considerations
G&G perspective: use business formation as background when reviewing market structure, then rely on sector-specific customer, competitor and capacity evidence. New entrants should validate demand and cash requirements; established firms should monitor changing propositions and customer expectations rather than responding to the headline rate alone.