New research reveals Professional Services is one of the UK’s fastest growing sectors

Business is booming in the UK professional services industry, as new research by Yell Business has revealed that it was the second fastest growing sector throughout 2021. 

Key findings from research:

• A new study using Companies House data has revealed that 116,669 new businesses offering Professional Services were founded in 2021, the second highest across all industries
• More than 1 in 10 (16%) of all new businesses founded during 2021 were from those offering Professional Services such as Marketing and Legal Advice
• The research by Yell Business also found that key areas to start up in the professional services sector include Peterborough, Nottingham, and Chester

Using data acquired from Companies House, the research helps to show that despite another challenging year, the entrepreneurial spirit of the nation is alive and well, with more businesses founded per month in 2021 than in 2020, or even during pre-pandemic 2019. 

In fact, an average of 13% more new businesses were founded each month in 2021 vs. 2019 and it was the Professional Services industry helping to lead the way. Of the 718,441 companies started up to and including November 2021, 116,669 (16%) of those were from within the sector, sitting behind only Retail, as services such as Surveyors, Marketing agencies and Accountancy firms were in high demand. 

Of those new ventures founded within the industry, some 7,251 were Advertising agencies, while 3,233 that registered with Companies House were set up to offer Financial Management. 

The 10 fastest-growing sectors in 2021:

Yell’s research also revealed where budding entrepreneurs could find the biggest opportunities within the sector. This was achieved by analysing the Google search demand for the likes of ‘London Solicitor’ versus the actual number of businesses offering this particular service in each area. Revealing that demand for Solicitors in Nottingham far outweighs the supply and therefore could present an opportunity for any legal practitioners looking for a new area with a strong client base. 

Key areas where demand outweighs supply in the Professional Services sector:

Claire Miles, Chief Executive Officer of Yell, commented:

“With the challenges of the last two years, we might expect to find that fewer people were deciding to take the leap into the world of starting and running their own business.

“However, the data clearly shows that it has potentially inspired more people to take ownership of what they do for a living and finally make the dream of running their own business come true.  

“With the background of the pandemic and numerous economic and supply chain challenges, it’s really encouraging to see that the entrepreneurial spirit of the UK is continuing to grow year on year.

“We look forward to working with some of these new business owners in 2022, to help make their venture a success.” 

The extensive analysis also highlighted which areas of the UK had seen the highest number of businesses launched per capita, and somewhat surprisingly the Welsh coastal town of Llandudno ranked as the most entrepreneurial location, showing that big business doesn’t just start in the city.  

Further breakdowns of these findings can be found in the full report published here.

Kindly shared by Yell Business

Main photo courtesy of Pixabay