UK Business Population Insights: What the Numbers Tell Us
As an independent insurance broker, understanding the landscape in which we operate is key. We’ve pulled together some recent stats about the UK business population, insights that help us better support businesses like yours.
📊 Market Overview
According to money.co.uk, the UK commercial insurance market was worth over £15.5 billion in 20231. As of early 2024, there are 5.5 million private sector businesses in the UK:
- 5.45 million are small (0 – 49 employees).
- 37,800 are medium-sized (50 – 249 employees).
- 8,250 are large (250+ employees).
That means over 99% of UK businesses are classified as small, a huge majority, although the overall business population hasn’t yet bounced back to pre-COVID levels. More data available here.
🔍 Breaking It Down by Sector: SMEs
So where are all these small and medium businesses operating?
- Construction leads the way, with 16% of SMEs.
- Professional, scientific & technical services (like legal, accounting, IT, and consulting) make up 14%.
- Wholesale, retail, and motor trade account for 11%.
🏢 What About Larger Businesses?
Large businesses make up a smaller portion of the population but account for 40% of UK employment.
Top sectors among large companies include:
- Manufacturing (1,300 businesses).
- Admin & support services (1,200).
- Wholesale & retail (1,200).
📋 Quick Stats from the UK Small Business Survey
- 75% of SMEs are family-owned.
- 50% of UK businesses are underinsured.
- 78% reported a profit in 2023.
- Top challenges: energy costs, competition, taxation, regulation, and skills shortages.
- In 2023, consumers were more likely to trust SMEs over large corporates.
As a proudly independent broker, we’re glad to be on the side of trust.
🛡️ Whether you’re a sole trader, a growing SME, or something in between, Hodgson Insurance Solutions is here to help safeguard your business with tailored business cover.
Let’s chat:
📞 01288 353 999
