Tens of thousands more business registrations were seen in Scotland in the first half this year compared to 2023, according to the New Startup Index, published by Beauhurst and supported by the Royal Bank of Scotland.

The Index, which is a report into business creation in the UK and its nations and regions, specifically found there were 21,700 new company registrations in Scotland, a 3.69% year-on-year increase when compared to the first half of 2023.

Across the UK as a whole, 468,000 new firms were started in 2024, continuing what’s been a significant uplift in new businesses in recent years, with numbers growing from 173,000 in the first quarter of 2020 to 248,000 in the first quarter of 2024—representing a 43.4% increase overall.

What’s more, registration numbers rose across nearly the whole of the UK so far this year. Wales and the South West were the only regions to see a decline, and at -9.99% and -0.85% respectively. Out of all locations, London saw the highest new business incorporations at 161,000, marking a 7.38% increase.

The report’s positive figures also coincide with new analysis from Beauhurst, which shows that businesses on Royal Bank of Scotland’s free accelerator programme are more likely to generate higher turnover growth, raise more investment, and have better survival rates than other similar businesses.

Speaking on the findings—and Beauhurt’s analysis of the aforementioned accelerator—Paul Thwaite, Natwest Group and Royal Bank of Scotland CEO, said: “The UK’s potential for growth is made clear by the numbers of people now starting their own businesses.

“Small businesses are the lifeblood of our economy, accounting for three-fifths of employment and about half of the private sector’s turnover. If these new businesses are given the right conditions to succeed, they could significantly boost the UK economy.

“Across the UK, NatWest Group is helping more businesses get started than any other bank. We play a key role in giving startups the tools to scale and succeed – with data from our accelerator showing our support significantly boosts businesses’ turnover, investment and chances of survival.

“This September we are taking our commitment to small businesses up a level by over doubling the amount of free places on our Accelerator programme, to 2,500 businesses.

“We are creating the environment where businesses have the support, guidance and conditions they need to thrive – because when small businesses succeed, the UK succeeds.”

Recommended reading

• Tech Companies Incorporated in Scotland Rose by 21% Last Year
• Tech Nation’s Last Report: UK Tech to Quadruple by 2032
• New Data Reveals Challenges for Scotland’s Female Entrepreneurs

The New Startup Index report also aligns with recent analysis carried out by RSM UK regarding tech incorporations specifically.

RSM UK found that, despite global economic headwinds, the number of new technology companies incorporated in the UK reached a five-year high in the first quarter of 2024.

UK tech incorporations increased by 11% to 13,802 in the first quarter of 2024, up from 12,441 in the first quarter of 2023.

Further, the numbers represented an increase of 4.4% on the last quarter of 2023, which saw 13,218 tech companies registered across the UK.