OVER 21,500 new companies have been incorporated in Scotland since the beginning of 2025, according to a new startup index.
This represents an increase of 17.9% compared to the second half of 2024, putting Scotland second only to the North East of England in terms of comparative growth.
The data, which covers startup activity across the entire UK, was collected as part of the New Startup Index, a collaboration between NatWest and Beauhurst, a data firm.
The index recorded the incorporation of 426,000 new companies in the UK during the first half of 2025, which they say signals a renewal in investor confidence in the British market.
Scotland’s most active sector was hospitality – 2,131 new restaurants, bars, cafes, takeaways, and eateries opened their doors in the first half of the year.
Property development and construction also saw 1,316 new businesses founded – a 23.1% increase – and trade services like plumbing or electrical contracting had 1,305 new businesses launched – representing Scotland’s highest sectoral growth at 27.1%.
Elsewhere in the UK, the North East of England recorded 19% rise in startup activity, while the West Midlands and North West recorded 16.9% and 16.5% growth in startup activity, respectively.
Ten UK regions recorded growth in startup activity in the first half of 2025 compared to the sluggish second half of 2024.
The New Startup Index has been published every year since 2019.
James Holian, head of business banking at NatWest, commented: “The first half of 2025 has shown that the UK’s entrepreneurial spirit is not only alive but accelerating.
“What’s particularly encouraging is that this momentum is not confined to London, with regional growth underscoring the strength and ambition of founders up and down the country.
Lord Livermore, financial secretary to the treasury, said: “It is extremely welcome to see startup activity increase in ten separate regions, helping to deliver jobs and investment in communities right across the UK.
“Through our £120bn capital investment in growth-generating projects, our plan for small and medium sized businesses and our industrial strategy, we are backing Britain’s entrepreneurs and startups to expand further, grow faster and create more well-paid jobs.”
Henry Whorwood, managing director at Beauhurst, said: “It is encouraging to see some recovery from the incorporation volumes seen at the end of 2024.
“Whilst still down from previous first halves, this recovery is impressive when against a challenging macro background, and policies announced in the Budget that were antagonistic to entrepreneurs.”
Deputy First Minister Kate Forbes said:
“I want to make Scotland the best place in the world for founders to launch and grow a start-up business and it is very encouraging to see this latest data from NatWest showing such a significant increase in Scottish start-up companies being created.
“It indicates a confidence in the business environment and conditions being created to encourage any business-minded person who wants to start or develop their business idea to do so.
“It is of course important that entrepreneurs aren’t just encouraged to start a business but have the right help to grow and develop. It’s precisely why the Scottish Government is making record investment in Entrepreneurism this year, helping build the network of support available to start-ups at every stage of their journey.
“This includes continued investment in the Ecosystem Fund and Techscaler programme, a record £6 million investment in supporting women and other under-represented groups at the start of their entrepreneurial journey, and new multi-million funding to help turn ground-breaking research across the country’s universities and colleges into high-growth businesses.”
