The number of new businesses registered in Somerset soared by 167% from January to June 2025 – the largest increase for any local authority in Britain.<\/p>\n
This is according to research by iwoca, one of Europe’s largest small business lenders, which has released its Business Hotspots 2025 data\u00a0 derived from an analysis of Companies House and reveals 1,612 businesses were registered in Somerset between January and June 2025, up from 603 in the same first six months of 2024.<\/p>\n
Somerset most popular place to start a business in the South West<\/strong><\/p>\n Somerset is the South West\u2019s premier destination for new business formation, with 1,024 new businesses per 100,000 residents in the first half of the year \u2014 significantly above the South West\u2019s average of 360.<\/p>\n Meanwhile, Dorset ranked second highest business growth in the South West, with 503 new firms per 100,000, followed by Bournemouth (466).<\/p>\n Registrations across Britain fall following Companies House changes<\/strong><\/p>\n Somerset was one of just three local authorities in Britain where registrations increased compared with the first-half of 2024.<\/p>\n Worcestershire saw the number of new firms grow by 9% from 2,742 to 2,994, and Warwickshire had a 4% increase to 2,862 in the first six months of 2025.<\/p>\n This is in stark contrast to the rest of the country, with the number of new registrations in the first half of 2025 falling 21% nationwide.<\/p>\n This follows the introduction of higher Companies House fees and more stringent registration rules in Spring 2024, as well as persistently low SME confidence over the last 12 months.1<\/p>\n This was the first year that registrations fell nationwide since iwoca\u2019s Business Hotspots index began in 2021, with numbers falling in all regions across the country.<\/p>\n The South West saw the smallest drop compared with the first six months of 2024, falling 9% from 20,846 to 19,030 over the same period in 2025.<\/p>\n Meanwhile, Wales was the most affected region, with registrations falling 39% from 24,613 in the first half of 2024 to 15,053 from January to June this year.<\/p>\n Adam Dance, MP for Yeovil, described the report as brilliant news for Somerset.<\/p>\n “Seeing nine new businesses a day set up in our area shows the talent, drive and creativity we have across our communities,” he said.<\/p>\n “It is especially encouraging to see Somerset bucking the national trend and leading the way in the South West. But while these figures are a welcome boost, we must also make sure the environment is right for these businesses to thrive.<\/p>\n “I regularly hear from small business owners about the pressures they face, from unfair business rates to rising costs and lack of support. If we want this growth to continue, we need to see real backing from Government, including urgent reform of business rates and proper investment in local infrastructure.<\/p>\n “Small businesses are the backbone of our economy. They deserve every chance to succeed.\u201d<\/p>\n Christoph Rieche, CEO and co-founder of iwoca, added: “Start-ups are the fresh organisms in our economic ecosystem, driving innovation, efficiency, and future prosperity.<\/p>\n “While new business registrations fell in 2025 due to stricter Companies House rules across the country, it’s encouraging to see over 1,600 new firms still launched in Somerset in the first half of the year.<\/p>\n “This clearly shows that Somerset\u2019s entrepreneurial spirit remains incredibly strong. We wish all these founders every success.”<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" County ranks as South West\u2019s leading business hub, with Dorset in second and Bournemouth third<\/p>\n","protected":false},"author":26,"featured_media":28364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120667],"coauthors":[160],"class_list":["post-28363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smes","tag-featured-story","tag-somerset"],"yoast_head":"\n