A new study has highlighted the best-performing sectors for business growth in the UK, with Health and Social Care emerging as the leader. The research, conducted by MRP software firm MRPeasy, used data from the Office for National Statistics (ONS) to track business success from 2022 to 2024.
The study ranked industries based on the net growth of businesses, focusing on sectors that saw the highest number of business registrations. Health and Social Care businesses have flourished over the two-year period, growing by 8.06%, making it the most successful industry for new ventures in the UK.
Since 2022, 8,540 new businesses have emerged in the Health and Social Care sector, representing 4.26% of all UK businesses. This industry, which includes hospitals, medical practices, residential care homes, and daycare services, accounts for 3.89% of all business births. Analysts point to increasing demand for healthcare services and social support, driven in part by an ageing population and heightened awareness of public health issues.
The Real Estate sector ranked second in the study, with a growth rate of 5.06%. Some 5,620 new businesses have entered the property market since 2022. Real estate companies now account for 4.34% of all businesses in the UK, representing 3.67% of new company registrations. This sector includes businesses involved in buying, selling, and renting properties, as well as managing real estate such as conference centres and private housing.
The Education sector takes third place, having grown by 3.27% between 2022 and 2024. This growth is attributed to 1,535 new education-based businesses, now accounting for 1.80% of all UK businesses and 1.62% of business births. The Education industry includes establishments offering pre-primary, primary, secondary, and higher education services, alongside technical, vocational, cultural, and recreational training.
Despite ongoing economic challenges, the Construction industry ranked fourth, with a growth rate of 1.93%. Over the two-year period, 7,250 new businesses have joined this sector, making up 14.21% of all UK businesses and 14.69% of business births. The construction industry includes residential and non-residential building projects, infrastructure development, and companies specialising in plumbing, electrical, and heating installations.
The Arts, Entertainment, Recreation, and Other Services industry rounds out the top five, having grown by 1.83%. Some 3,320 new businesses have been launched in this sector, accounting for 6.84% of all UK businesses and 6.54% of new ventures. The industry includes establishments involved in performing arts, museums, fitness centres, and other recreational services.
However, not all sectors are thriving. The Transportation and Storage industry has experienced the steepest decline, shrinking by 16.51% over the same period.
Commenting on the findings, Karl Heinrich Lauri, CMO of MRPeasy, said, “The Health and Social Care industry’s remarkable growth reflects the increasing demand for essential healthcare services. Meanwhile, the Real Estate and Education sectors have also shown strong resilience, highlighting the diverse opportunities for business growth in the UK.”
Lauri added that industries such as Construction and the Arts continue to attract new ventures, showcasing their potential for sustainable growth in the coming years.
Top 5 Growing UK Industries:
- Health and Social Care: +8.06%
- Real Estate: +5.06%
- Education: +3.27%
- Construction: +1.93%
- Arts, Entertainment, Recreation and Other Services: +1.83%