Despite facing a significant cost of living crisis, the entrepreneurial spirit in the UK remains robust, with over 3.8 million people thriving as self-employed individuals.
This group now constitutes 9.31 percent of the country’s total employment, showcasing a resilient and innovative workforce.
London, England, stands out as the epicentre of entrepreneurial activity, boasting 719,000 self-employed individuals. This accounts for 11.7 percent of the city’s workforce, the highest proportion in the UK.
The capital’s diverse economy and robust infrastructure support a vibrant start-up culture, making it an attractive hub for entrepreneurs across various sectors. The availability of incubators, accelerators, and investment opportunities further fuels this growth.
Regional Overview: England Dominates, Scotland Trails
England is the leading region for self-employment, with 3,341,900 individuals, translating to 9.51 percent of total employment. The prevalence of large cities such as London, which offer extensive support for freelancers and sole proprietors, contributes to this high rate. In contrast, Scotland’s self-employment rate is lower at 7.82 percent, possibly due to its economy’s reliance on sectors like oil and gas, public services, education, and healthcare, which traditionally offer more stable, salaried positions.
Key Cities: A Diverse Landscape of Entrepreneurship
Beyond London, other cities like Birmingham, Ripon, and Truro also have significant self-employed populations. Birmingham, with a lower cost of living than London, supports 54,600 self-employed individuals, making it a practical choice for new entrepreneurs. Despite their smaller populations, Ripon and Truro stand out for having a higher percentage of self-employed workers, at 14 percent.
Female Entrepreneurship on the Rise
Post-pandemic, the UK has seen a notable increase in female entrepreneurship. Cities like Oxford and Norwich show a substantial gender gap favouring female entrepreneurs. In Oxford, there are 6,400 female entrepreneurs compared to just 1,100 male counterparts, a trend mirrored in other cities such as Aberdeen and Cambridge. This shift indicates a growing female presence in the entrepreneurial landscape.
Age Demographics: Middle-Aged Entrepreneurs Lead
The majority of UK entrepreneurs are middle-aged, with 95.90 percent of self-employed workers being over the age of 25 as of 2022. The age group 35-64 is particularly prominent, reflecting a stable trend even in the post-pandemic period. Younger individuals aged 16-24 are significantly underrepresented in self-employment, suggesting a potential area for growth and support.
The resilience of UK entrepreneurs
James Dooley, an expert from Searcharoo, highlights the resilience and adaptability of UK entrepreneurs in navigating economic challenges. “If you’re ready to be your own boss, factors such as age, gender, and location can significantly influence your experience,” he advises. With a solid business plan, clear financial understanding, and a willingness to embrace risk, individuals can find success in self-employment, regardless of the broader economic climate.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
