The Most Common New Business in the UK? Online Retail!

The Most Common New Business in the UK? Online Retail!

June 23, 2025

Online shopping has emerged as Britain’s favourite new business venture, a fresh study reveals. Research from manufacturing software provider MRPeasy found that internet retail dominated new UK business registrations last year. Their analysis of Companies House data showed retail sales via mail order houses or via the Internet topped the chart with a whopping 24,240 new firms registered. Online shops now make up nearly a third of all new businesses in Britain’s wholesale and retail sector. Other letting and operating of own or leased real estate secured second place with 22,321 new businesses, while buying and selling of own real estate took third with 16,741 registrations. 

Management consultancy activities ranked fourth with 13,881 new firms, information technology consultancy came fifth with 9,478 registrations, and business and domestic software development took ninth with 7,044 companies. 

Food businesses made a strong showing with take-away food shops and mobile food stands grabbing sixth place. Next came other business support service activities in seventh spot with 7,337 registrations, and other service activities in eighth with 7,074 new firms.

The tenth most popular business type was activities of other holding companies, with 6,473 new registrations, pointing to significant activity in corporate structuring.

Looking at broader categories, wholesale and retail trade led with 83,090 total new businesses, followed by real estate activities (49,714 businesses) and professional, scientific and technical activities (41,990 businesses). 

Information and communication took fourth spot with 37,326 new businesses, while construction completed the top five with 34,782 new registrations.

Top 10 Most Common Business Classifications in the UK in 2025

 ClassificationCategoryBusinesses
1Retail sales via mail order houses or via the InternetWholesale and retail trade24,240
2Other letting and operating of own or leased real estateReal estate activities22,321
3Buying and selling of own real estateReal estate activities16,741
4Management consultancy activities other than financial managementProfessional, scientific and technical activities13,881
5Information technology consultancy activitiesInformation and communication9,478
6Take-away food shops and mobile food standsAccommodation and food service activities8,374
7Other business support service activities n.e.c.Administrative and support service activities7,337
8Other service activities n.e.c.Other service activities7,074
9Business and domestic software developmentInformation and communication7,044
10Activities of other holding companies n.e.c.Financial and insurance activities6,473

At the opposite end of the scale, traditional industries saw minimal new activity. Mining and quarrying proved the least popular business category with just 373 new registrations across Britain. 

Electricity, gas, steam and air conditioning supply ranked second-lowest with 643 new businesses, followed by water supply, sewerage, waste management and remediation activities with 1,125 registrations. 

Public administration and defence; compulsory social security took fourth-last place with 1,171 new businesses, while agriculture, forestry and fishing completed the bottom five with 1,652 registrations.

Five Least Common Business Categories in the UK in 2025

 ClassificationBusinesses
1Mining and quarrying373
2Electricity, gas, steam and air conditioning supply643
3Water supply, sewerage, waste management and remediation activities1,125
4Public administration and defence; compulsory social security1,171
5Agriculture, forestry and fishing1,652

Karl Heinrich Lauri, Managing Team Member at MRPeasy, offered his insights on the findings:

“The data reveals clear trends in the UK’s entrepreneurial landscape, with digital businesses continuing to lead the way. The strong showing of e-commerce reflects how the pandemic permanently changed consumer shopping habits, creating opportunities for new online retailers.

“It’s interesting that while manufacturing ranks outside the top ten categories, we’re still seeing over 12,000 new manufacturing businesses established in 2025. This suggests there remains solid interest in production despite challenges such as energy costs and supply chain disruptions.

“Small manufacturers today can compete effectively by using digital tools that were once only available to larger businesses. Modern MRP systems help these companies manage production efficiently and maintain competitiveness in an increasingly digital marketplace.”

Brenda Berg is a professional writer with over 15 years experience in business management, marketing and entrepreneurship. Consultant and tutor for college students and entrepreneurs. She is passionate about covering topics on career, self-development, writing, blogging and others.