Online Retail Surges as UK Registers Over 24,000 New Startups

The United Kingdom has witnessed a remarkable surge in online retail businesses, with over 24,240 new startups registered in 2025. This growth positions online shops as the most popular type of new business in the country, according to a review by manufacturing software provider MRPeasy. The data, derived from Companies House, highlights a significant shift in the entrepreneurial landscape, reflecting changing consumer habits accelerated by the pandemic.

Online retail not only tops the startup charts but also constitutes nearly a third of all new businesses in the UK’s wholesale and retail sector. The research indicates that retail sales via mail order houses or the Internet have become a dominant force, illustrating a clear preference among new entrepreneurs for e-commerce ventures.

Leading Business Types and Trends

Following online retail, the property sector has made a substantial impact, with three categories within the top ten most common business types. The second most registered category is the letting and operating of own or leased real estate, which saw 22,321 new businesses established. It is followed closely by the buying and selling of own real estate, which recorded 16,741 registrations.

Other notable entries in the top ten include:

1. Management consultancy activities, with 13,881 new firms.
2. Information technology consultancy, which registered 9,478 new companies.
3. Take-away food shops and mobile food stands, contributing 8,374 registrations.

The data also reveals significant activity in the technology sector, with business and domestic software development registering 7,044 new firms, while other business support services and other service activities rounded out the rankings.

Looking at broader categories, the wholesale and retail trade leads with a total of 83,090 new businesses registered. Real estate activities follow with 49,714, while professional, scientific, and technical activities account for 41,990 new firms. Information and communication, along with construction, complete the top five with 37,326 and 34,782 new registrations, respectively.

Traditional Industries Struggle

In stark contrast, traditional industries have shown minimal new activity. The mining and quarrying sector ranked lowest, with only 373 new registrations. Other struggling sectors include electricity, gas, steam, and air conditioning supply, which recorded 643 new businesses, and water supply, sewerage, waste management, and remediation activities, which saw 1,125 registrations.

Public administration and defence, along with compulsory social security, ranked just above with 1,171 new businesses, while agriculture, forestry, and fishing completed the bottom five with 1,652 registrations.

The data underscores a significant trend in the UK’s entrepreneurial landscape, where digital businesses continue to dominate. This shift reflects how the pandemic has permanently altered consumer shopping habits, creating a fertile environment for new online ventures. As traditional sectors lag behind, the future appears increasingly digital for new businesses in the UK.