Research reveals UK leads Europe’s tech start-up scene

• UK leads tech scene in Europe with 392,627 new start-ups over last five years
• 20% of all start-ups in the UK fall under Professional, Scientific and Tech category
• UK ranks 3rd overall (across total start-ups) with 1.8m new businesses registered in last five years and tops growth chart with 5% five-year start-up growth
• TransferWise, Digital Shadows & Sonovate amongst tech start-ups driving significant growth

The map explores and analyses:

• No. of businesses registered between 2013-2017
• Top industries fuelling growth
• 5 Year start-up growth rate
• Top year for start-ups across all industries

UK leads tech growth

According to Companies House, nearly two million start-ups were registered in the UK between 2013-2017 with 20% of those falling within the tech sector (392,627 in the five-year time period).

2017 marked the most successful year for start-ups in the UK with nearly 80k new companies registered within the tech sector and Chancellor of the Exchequer Philip Hammond claiming that a new technology firm is set up at a rate of one per hour in the UK in this year’s Spring Statement.

UK Start-up Stats:

• 1,860,724 - No. of overall businesses registered between 2013-2017
• 392,627 - No. of businesses registered between 2013-2017 within the technical, scientific & professional activities sector
• 20% - Percentage of gross. Start-ups which fall under the ‘technology, scientific & professional activities’ sector
• 2017 - Top year for start-up growth across all industries between 2013-2017
• 5.09% - 5-year start-up growth across all sectors (largest in Europe)

EU’s fastest growing tech start-up markets:

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Despite uncertainty in the economy, the government’s focus on the technology sector and UK tax regimes along with a variety of accessible and flexible finance options have proved to be powerful in providing confidence for entrepreneurs in tech businesses.

Guy Moreve, Chief Marketing Officer at Paymentsense, says:

“The UK ranks among the top five countries with the highest number of registered new businesses and has seen the biggest growth overall within the last five years. It shows that the country offers great foundations for entrepreneurs, especially within the tech sector.

Further afield, it’s fascinating to see how Europe has changed in recent times. A number of countries are now placing more emphasis on technology which has helped create a ‘golden era’ for tech start-ups.”

Guy advises, “Within your respective country, it’s important to ensure you fully analyse the market you’re addressing – what has worked well for recent start-ups and what hasn’t; It’s also worth looking at the legal and environmental conditions in order to make sure your business idea is a success”.

UK’s top 10 fastest growing tech firms over the past 4 years (according to the Deloitte Fast 50):

You can find the full research for all 30 European countries here: www.paymentsense.co.uk/europes-most-popular-startups/

Data Sources

The statistics used to inform this research were all sourced and provided by Statista and can be detailed further on request. All data for 2016 and 2017 are estimated, using linear derivation. Any data provided as N/A has been aggregated as zero. The research has been carried out on behalf of Paymentsense, who provide award-winning low-cost merchant services and card machines, in April 2018.

About Paymentsense

As Europe’s largest merchant service provider, Paymentsense enables over 65,000 SMEs to process over £6 billion worth of card payments per year. From card machines to semi-integrated and online payment services, Paymentsense supplies small businesses with card processing solutions that allow them to take payments in store, online, over the phone and on the move.