According to the 2025 Start Up Ambition Report, nearly half (47%) of UK adults are considering launching a business or side hustle this year—marking a 12% increase compared to 2024. While London still leads with the highest number of new business registrations (66,920), the South East is proving to be an increasingly attractive alternative due to lower operational costs, strong infrastructure, and a growing talent pool in key cities like Brighton and Oxford.
Why the South East?
The report identifies several factors driving business growth in the South East:
- Proximity to London: Entrepreneurs benefit from access to London’s business ecosystem while avoiding the high costs associated with operating in the capital.
- Booming regional hubs: Cities like Brighton and Oxford offer thriving startup scenes, particularly in digital, tech, and creative industries.
- Diverse business landscape: The region has seen significant growth in business administration and support services (+17%), finance and insurance (+5%), and hospitality (+3%), aligning with national trends.
- Skilled workforce and infrastructure: With a well-educated workforce and excellent transport links, businesses can scale efficiently without being London-based.
| Regional | Q1 2024 | Q2 2024 | Q3 2024 | Q5 2024 | Total 2024 |
| London | 18,415 | 17,225 | 16,625 | 14,655 | 66,920 |
| South East | 11,285 | 11,260 | 9,960 | 8,880 | 41,385 |
| North West | 9,085 | 8,685 | 8,190 | 6,980 | 32,940 |
| East | 8,025 | 7,645 | 7,020 | 6,070 | 28,760 |
| West Midlands | 7,225 | 6,670 | 6,250 | 5,330 | 25,475 |
| Yorkshire and The Humber | 6,035 | 5,895 | 5,340 | 4,690 | 21,960 |
| South West | 6,070 | 5,895 | 5,180 | 4,620 | 21,765 |
| East Midlands | 4,985 | 5,220 | 4,825 | 4,045 | 19,075 |
| Scotland | 4,920 | 4,925 | 4,365 | 3,815 | 18,025 |
| Wales | 2,760 | 2,695 | 2,545 | 2,025 | 10,025 |
| North East | 2,355 | 2,520 | 2,090 | 1,780 | 8,745 |
| Northern Ireland | 1,560 | 1,500 | 1,735 | 1,465 | 6,260 |
Top growth sectors in the South East:
- Business administration and support services: This sector experienced a 17% year-on-year growth, driven by increasing demand for outsourced HR, IT, and payroll services.
- Finance and insurance: A 5% increase in business registrations reflects the rising demand for fintech innovations, investment products, and digital banking solutions.
- Accommodation and food services: With a 3% growth, the hospitality sector continues to expand, supported by increasing tourism and consumer demand for unique dining experiences.
A Shifting Business Landscape
The South East’s entrepreneurial rise reflects broader changes in the UK’s business environment. While the North West (32,940 new businesses) remains the strongest hub outside the South, the South East’s steady expansion positions it as a major player in the UK economy.
Jerome Fernandez at Funding Circle comments:
“The growth of new businesses is essential to strengthening the UK economy, and providing entrepreneurs with access to finance is key to turning their vision into reality. Despite recent challenges, data suggests a positive outlook, with ONS business insights revealing that 22% of trading businesses expect their turnover to rise by March 2025, and 20% anticipate overall performance growth within the next year. The data underscores the resilience of UK entrepreneurs, the shifting regional business dynamics, and the continued importance of financial support and policy initiatives to sustain and encourage business growth in the years ahead.
When starting a business, choosing the right location is crucial for success. It’s important to consider the services you offer, how they fit within the local market, and the level of competition in the area to ensure your business can thrive. While concerns over taxation and rising costs persist, a business credit card can offer a flexible financial safety net, helping entrepreneurs to hit the ground running, manage cash flow, and keep their businesses running smoothly.”
Looking Ahead
With business confidence on the rise and more entrepreneurs seeking opportunities beyond London, the South East is set to solidify its position as a top destination for startups and SMEs. As Funding Circle continues to support businesses with access to finance, the data reinforces the importance of regional growth and investment in fostering a thriving UK business landscape.