UK Business Density Map: Where Companies Are Concentrated by Region

If you want to know where UK business activity is most concentrated, business density is the quickest signal to watch. At the start of 2025, the UK had around 5.7 million private sector businesses, up 3.5% (191,000) from 2024. Department for Business and Trade, Business Population Estimates 2025

In density terms, London stands out, 1,436 businesses per 10,000 resident adults. Wales sits at the other end of the scale, 742 per 10,000. Those two numbers alone tell you a lot about competition, supply chains, and where customer acquisition is likely to be hardest in 2026.

What is "business density" in this map?

Business density here means the number of private sector businesses per 10,000 resident adults (aged 16 and over). It is designed to compare places fairly, even when they have very different population sizes.

• Numerator: estimated private sector businesses (includes businesses not registered for VAT or PAYE).
• Denominator: resident adult population, based on official population estimates.
• Important caveat: counts are based on head office location, not where a business trades day to day.

Business density by region in 2025

The table below combines the regional business counts (in millions) with business density (businesses per 10,000 resident adults) from the 2025 release.

Region or country	Businesses (millions, start of 2025)	Businesses per 10,000 adults (start of 2025)
London	1.042	1,436
South West	0.562	1,163
South East	0.877	1,135
East of England	0.579	1,102
East Midlands	0.402	984
West Midlands	0.451	918
Yorkshire and the Humber	0.408	895
North West	0.509	823
North East	0.167	744
Scotland	0.361	786
Wales	0.194	742
Northern Ireland	0.139	905

Where business is concentrated, and what it means for 2026

1) London is the densest market by a wide margin

London has both the highest business count (about 1.042 million) and the highest density (1,436 per 10,000 adults). For 2026, that usually means:

• More competition for customers and staff, especially in service sectors.
• More established networks, faster deal flow, and higher supplier choice.
• Higher risk of "crowded" paid channels, but better potential for partnerships.

2) The South West and South East have "small business weight"

The South West (1,163) and South East (1,135) are the next-highest density regions. These areas can be strong for owner-managed firms, professional services, and local consumer markets, because they have many businesses relative to the adult population.

3) Midlands and North regions show lower density, with clear variation

East Midlands (984) sits close to the UK-wide level, while West Midlands (918), Yorkshire and the Humber (895), and North West (823) are lower. The North East is lowest among English regions at 744.

For 2026 planning, lower density can cut two ways:

• Opportunity: less local competition in some niches, potentially cheaper routes to awareness.
• Constraint: thinner supplier ecosystems in specialist services, and fewer obvious partnership targets.

4) The UK nations differ sharply on density

England's average density is 1,062 businesses per 10,000 adults, while Northern Ireland is 905, Scotland 786, and Wales 742. That gap matters if you are benchmarking "how entrepreneurial" a place looks on paper, or deciding where to pilot a new offer.

How population trends shape business density signals

Business density is partly a business story, and partly a population story. In the year to mid-2024, the UK population reached 69,281,400, rising by 755,300 (1.1%). Net international migration was estimated at 738,700 in that year, which is a major driver of consumer demand and workforce availability going into 2026. ONS, Population estimates: mid-2024

Practical takeaway for 2026: if a region's adult population grows faster than its business count, density can flatten even when the economy feels busy. The reverse can also happen, density can rise even with modest population change.

How to use this "density map" for site selection and growth

Use density to frame your go-to-market, not to "pick winners"

• High-density regions (like London, South West, South East) are often better for partnership-led growth and premium positioning, but you should expect more competitors.
• Mid-density regions (like East Midlands and West Midlands) can work well for scalable rollouts, because they often balance market size and competition.
• Low-density regions (like North East and Wales) can be strong for targeted offers where you can become locally known quickly, but you may need to invest more in ecosystem building.

Don't forget what the data counts, and what it misses

Because the estimates are based on head office location, a firm may operate across the UK while only appearing in one region's count. If your decisions depend on where economic activity happens on the ground, treat density as a starting point and validate with local unit or site data.

Conclusion

In 2025, London is the clear outlier for business concentration, with 1,436 businesses per 10,000 adults and about 1.042 million businesses. The South West and South East also show high density, while Wales and the North East sit at the low end. Combine these signals with population change trends, especially migration-driven growth, to make better market-entry bets for 2026.