Scotland’s top spots for new companies in 2024 revealed and one city stands out

More than two dozen businesses were created every day in Glasgow during the first half of 2024, handing the city top spot for company creation in Scotland, though the country as a whole trails other parts of the UK, new research suggests.

Analysis of the Companies House data reveals that more than 4,600 businesses were registered in Scotland’s largest city between January and June of this year, an increase of 16 per cent from the first half of 2023. It means that for the fourth year in a row, Glasgow saw the highest business creation per capita out of all local authorities in Scotland, according to the latest Business Hotspots list from Iwoca, which specialises in lending to small and medium-sized enterprises (SMEs).

Glasgow saw 754 businesses created per 100,000 people in the first half of the year, though a number of those will be holding firms or subsidiaries of existing registered companies. Meanwhile, Edinburgh saw the second highest business growth rate in Scotland, with 678 new businesses per 100,000, followed by Aberdeen (463).

Overall, however, Scotland experienced the second-lowest rate of new business creation per capita out of all regions and nations in Britain, with 393 newly registered firms per 100,000. This was an increase of 6 per cent from 2023, and saw Scotland overtake the north east of England, which now sits last in Great Britain.

The Iwoca report shows that across Britain, 105 businesses were created every hour in the first half of 2024, representing nearly 456,430 companies registered between January and the end of June. Compared to the same period in 2023, this is an increase of 6.5 per cent - suggesting that British business is continuing to recover despite a backdrop of continued economic and political uncertainty.

Of all cities and regions, London saw the highest rate of business creation in the first half of this year, with 1,734 new businesses being created per 100,000. Wales (792) and the West Midlands (653) rank second and third respectively.

Iwoca said the solid rate of business creation during the period coincided with an increase in workers moving into self-employment, according to official statistics. Between January and June of this year, 395,000 employees moved into self-employment, an increase of 20,000 compared to the first half of 2023, and an increase of 60,000 compared to 2022. Office for National Statistics (ONS) figures report 4.29 million self-employed workers in the UK as of September 2024.

Seema Desai, Iwoca’s chief operating officer, said: “Our annual Business Hotspots research highlights the resilience of businesses in Glasgow. Despite ongoing challenges such as inflation and the aftermath of Brexit and Covid-19, businesses across Britain are making a strong comeback and remain central to driving economic growth.”

Gordon McKee, MP for Glasgow South, added: “Glasgow is a fantastic place to do business and these statistics show that clearly, with the fastest growth in new businesses anywhere in Scotland. From gift shops to financial services and some of the best universities in the country, Glasgow has a huge amount to offer.

“I’ve been working with the new UK government to help support direct investment into the city and would encourage anyone who wants to set up a business here to go for it.”

More than two dozen businesses were created every day in Glasgow during the first half of 2024 | Canva / Getty

Meanwhile, a new study suggests that small businesses in Scotland are losing thousands of pounds each year due to a “lack of time” to manage all of their expenditure and outgoings. Small firms are losing £488 each month on average - equating to £5,856 per year - due to not having enough time to review their spending, the research commissioned by Smart Energy GB indicates.

Added to this, some two-thirds of small business owners claim they haven’t updated their approach to managing expenses in a significant way. The majority (92 per cent) were found to be willing to adopt a new strategy, and 60 per cent are already turning to technology to manage their business finances and boost productivity.

When it comes to keeping on top of their running costs, the research discovered that a third (33 per cent) of SME owners lack the time to thoroughly review their energy bills, while 25 per cent wish they had more capacity to focus on software and tech. Nearly half of Scottish SMEs have paid for unused subscriptions (46 per cent), with 35 per cent forgetting renewal notices and over half (54 per cent) overlooking subscriptions because they were smaller costs.

Smart Energy GB which is working with Nisha Katona, TV presenter and founder of Mowgli Street Food, with restaurants in Glasgow and Edinburgh, to share a free resource to help small business owners navigate their way through their business expenditure.

Katona said: “Small business owners have to navigate their way through endless expenditure and keeping a close eye on bills is critical to a business’ success. When I started my business, I had so much to juggle that I didn’t really put my mind to my energy usage but if I had, I could have saved so much more money.”

Smart Energy GB director Victoria Bacon added: “The research highlights the time pressures and range of responsibilities small business owners have. Also, their concerns, especially around managing their finances and running costs. One thing owners can do is get a smart meter installed, which can help them save both time and money. Smart meters send readings automatically to the energy supplier, putting an end to manual meter readings and estimated bills.”

City/area: New business registrations (Jan-Jun 24): New businesses in 2024 per capita (rate of businesses per 100,000): Rate of business registrations per day

Glasgow: 4,677: 754: 26

Edinburgh: 3,478: 678: 19

Aberdeen: 1,037: 463: 6

Dundee: 670: 452: 4

South Lanarkshire: 1,253: 383: 7

(Source: Iwoca’s Business Hotspots 2024)