STUDY REVEALS THE UK INDUSTRIES THRIVING IN 2023: HEALTH CARE SECTOR SEES HIGHEST GROWTH

STUDY REVEALS THE UK INDUSTRIES THRIVING IN 2023: HEALTH CARE SECTOR SEES HIGHEST GROWTH

• The Health and Social Care sector had the largest number of business ‘births’ (+8%) 
• The Agricultural, Forestry and Fishing industry had the highest business survival rate in Q2 2023, with 42% fewer business closures compared to Q2 2022
• There has been a notable 15% improvement in business survival rates in Q2 2023 vs Q2 2022 
• The Accommodation and Food Services sector was the worst hit industry for business closures (+2%) in Q2 2023

The business experts at Forbes Advisor have analysed the most recent UK business demography statistics to reveal the most thriving industries in 2023 so far. Findings indicate a notable improvement in business survival rates on the Inter-Departmental Business Register (IDBR) in Quarter 2 (April to June) 2023, compared to the same period in 2023. However, the number of businesses added to IDBR has fallen by 14%. All but two of sixteen sectors analysed experienced a decline in business births; The health and social care sector and real estate.

The Health and Social Care sector witnessed 3,400 new business registrations in Q2 2023 vs 3,125 in Q2 2022 (+8%) making it the best performing industry in terms of new business growth

The Real Estate sector also witnessed a modest rise in new business registers, marking a slight increase (+0.6%) from 3,090 businesses registered in Q2 2022 compared with 3,110 in Q2 2023. 

Following that, the Professional, Scientific, and Technical industries experienced a small decline compared to the previous year, with a marginal decrease (-0.7%) from 12,455 in Q2 2022 to 12,360 in Q2 2023 .

The sectors which recorded the greatest decrease in business births were those in Transportation and storage, which saw a 59% plummet from 8,950 in Q2 2022, to 3,665 in Q2 2023. This was followed by agriculture, forestry and fishing, which saw a 23% decrease from 1,030 in Q2 2022 to just 785 in Q2 2023. Finance and insurance, saw a 12% fall from 1,015 in Q2 2022, vs 885 in Q2 2023. 

Sectors with the highest survival rate

The data shows a 15% decrease in business closures year-on-year during Q2 2023. In total 84,150 businesses were removed from the IDBR, compared to 99,440 closures recorded in Q2 2022. 

The Agricultural, Forestry and Fishing industry recorded the highest business survival rate. Overall there were 42% fewer business closures within the sector in Q2 2023 compared to Q2 2022 (1,710 vs 2,970). 

This was followed by both the Transportation and Storage and Professional, Scientific and Technical sectors. The two industries experienced a 25% decrease in business closures (10,105 in 2022 vs 7,560 in 2023 and 16,760 in 2022 vs 12,575 in 2023 respectively).

Contrastingly, findings revealed that the Accommodation and Food Services industry faced the most significant business closures. A total of 7,035 businesses shutdown in Q2 2023 compared with 6,865 in Q2 2022 (a rise of 2%).

Sectors with the highest survival rate

Kevin Pratt, business commentator at Forbes Advisor, says:

“The 15% improvement in business survival rates is a sign of resilience in the face of economic challenges. Businesses must remain vigilant and seek out new opportunities and adapt to the changing market to maintain growth and stay competitive.

“Cost pressures will remain a thorn in the side of all businesses, as the figures from the Accommodation and Food Services Sector show. Labour shortages and associated upward pressure on wages, raw material costs, sky-high energy bills and weak consumer demand have clearly taken their toll.

“But elsewhere the signs are more positive. The improved survival rate in Agriculture, Forestry and Fishing perhaps suggests improved conditions for those at the head of the supply chain. And Health and Social Care will only assume greater importance as our population ages and more people need such services.