Nearly a third of new businesses registered through a leading UK company formation service were incorporated outside traditional working hours, suggesting growing numbers of employees are building ventures alongside their day jobs.
An analysis of 173,979 company registrations processed between 2023 and 2025 found that 31.6 percent were submitted between 5pm and 9am. More than 55,000 businesses were registered outside standard working hours during the past year alone.
The data also identified a consistent peak in registrations between midday and 2pm, indicating that many aspiring entrepreneurs are using lunch breaks to take their first formal steps into business ownership.
Side hustles move into the mainstream
The figures, compiled by company registration agency 1st Formations, add to growing evidence that side hustles are becoming a more established part of working life, particularly as people seek additional income streams and greater financial security.
 |
Get our essential weekday HR news and updates.
|
According to the analysis, Tuesday and Wednesday were the most popular days for company registrations both during and outside working hours. Weekend activity was lower overall, although Sunday evening registrations almost matched the number recorded during daytime hours.
The pattern suggests many founders are fitting entrepreneurial activity around existing jobs rather than leaving employment to launch a business full-time.
Recent research from pension provider Scottish Widows and online bank Monzo has also pointed to the growing popularity of side hustles, with nearly one in five UK adults now reporting additional income-generating activities alongside their main job.
Technology lowers barriers to starting a business
Graeme Donnelly, founder and chief executive of 1st Formations, said technology was making it easier for people to start businesses without immediately giving up their employment.
“We’re seeing a generation of founders who aren’t taking a reckless leap into the unknown; they’re building a business while the rest of the world sleeps.”
He said advances in artificial intelligence were helping entrepreneurs launch ventures more quickly and at lower cost.
“AI is letting founders launch faster and more cheaply, without leaving their day jobs or committing to expensive office space, and from wherever and whenever suits them. It has completely transformed the barrier to entry.”
The analysis suggests this approach is being adopted across different age groups and professions, from younger founders launching technology businesses to experienced professionals setting up consultancies alongside existing careers.
What it means for employers
The growth of side businesses presents both opportunities and challenges for employers.
For some workers, entrepreneurial projects can help develop skills in leadership, problem-solving and commercial thinking that may benefit their primary role. But employers may also face questions around conflicts of interest, intellectual property, working time and employee wellbeing if staff take on significant commitments outside work.
The lunchtime registration trend may be particularly notable for employers, with many workers appearing to use short breaks during the working day to progress business plans without stepping away from employment.
Donnelly said that “2026 is the year of the specialised, agile startup. Whether it’s a Gen Z founder registering a tech startup at 2am or a mid-career professional incorporating a consultancy after the kids are in bed, the pattern is consistent: the UK’s entrepreneurial spirit doesn’t punch a clock”.
The analysis was based on 173,979 company registrations processed by 1st Formations between 2023 and 2025. Registration timestamps were analysed to identify trends in when founders chose to incorporate their businesses.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
