*This has been updated for 2023

There’s no doubt that starting a business is one of the most daunting things you can do, not only in your professional career but in your life as a whole!

Most entrepreneurs will be giving up a steady, well paying job to roll the dice and start from scratch as the owner of their own, brand new business.

From huge decisions such as choosing your product or service, target audience and how to raise funds, to more frivolous choices such as which shade of blue your logo will be, there’s plenty to think about!

If you’re reading this article then you’ve probably already seen numerous startup failure rate statistics that so often get shared across national news sites and social media.

However, there’s a whole bunch of positive startup stats too which paint an altogether more rosy picture of becoming your own boss.

Statistics and analysis can also be a great way of understanding the current state of the UK startup scene and identifying potential pitfalls or areas of opportunity.

It’s for all these reasons that we’ve produced this ultimate list of startup statistics for you to cast your eye over and gain insight from.

Reasons for Starting Up 

In this section we take a look at the most common reasons that UK entrepreneurs start their own business, what inspires them to do so as well as what holds people back.

• 64% of UK workers wants to set up a business (SME Loans, 2019)
• 83% of 18-24 year olds have ambitions of self-employment (SME Loans, 2019)
• More males (69%) have ambitions to start up than women (56.4%) (SME Loans, 2019)
• Over ⅓ of the UK workforce don’t enjoy their job (SME Loans, 2019)
• The age group most driven by financial gain are 18-24 year olds (SME Loans, 2019)
• 1 in 3  UK workers want flexible working hours and have the option to work from home (SME Loans, 2019)
• 43% of aspiring entrepreneurs don’t think they will ever set up their company (SME Loans, 2019)
• ¼ of aspiring UK entrepreneurs are put off by ‘fear of stress’ (SME Loans, 2019)
• ⅓ of aspiring UK entrepreneurs would like to set up business with their husband or wife
• Only 13% of UK workers would choose their best friend as a business partner
• 39% of young entrepreneurs saw lack of access to funding as a major barrier to growth (Institute of Directors, 2016)

“⅓ of aspiring UK entrepreneurs would like to set up business with their husband or wife”

Startup Failure Stats 

Startup failure statistics are the most shared startup stats online. Take a look at some of the damning startup failure statistics below which shows just how hard it can be going alone.

• Fewer than half of UK Startups make it beyond 5 years (GOV.UK, 2019)
• 60 % of new businesses will go-under within three years (Telegraph, 2019)
• 20% of new businesses will close their doors within just 12 months (Telegraph, 2019)
• Nearly 1 in 5 new businesses fail in the UK each year (Buisness4Beginners, 2023) 
• Between 2020 and 2021, 390,000 businesses failed (money, 2023) 

“20% of new businesses will close their doors within just 12 months”

Startup Success Stats 

Don’t believe all the negative headlines. There’s more than enough small business success stats to reveal that UK businesses are still thriving.

• 1 company is formed every minute in the UK (GOV.UK, 2019)
• 89% of UK startups survive their first year (ONS, 2019)
• There were 5.8 million small businesses at the start of 2019, up from 5.7 million in 2018 (despite Brexit concerns) and up from 5.5 million in 2017. (GOV.UK, 2019)
• The number of small businesses in the UK has increased every year since the year 2000 and is expected to do so throughout the ‘20’s’. (GOV.UK, 2019)
• Before the pandemic, nearly eight out of ten SMEs reported that they were making a profit each year (money, 2023) 

“1 company is formed every minute in the UK”

Startup Funding Stats 

Startup funding or ‘capital’ is the money required to get a new company on its feet and turn an idea into a business. Startup funding can come from a variety of avenues such as personal savings, friends & family, loans, crowd funding and more.

• 2017 was a record high year for UK startup funding (Beauhurst, 2019)
• The total invested in UK startup companies dropped 15pc from £8.27 billion to £7 billion in 2018 amid Brexit fears (Beauhurst, 2019)
• 82% of Startups used Self Funding to start their business (Institute of Directors, 2016)
• 56% of Startups use self funding as their only source (Institute of Directors, 2016)
• 74% of startups used just one source of funding to start their business (Institute of Directors, 2016)
• On average, $10,000 are borrowed when starting up (moneyzine, 2023)

“74% of startups used just one source of funding to start their business”

 

Startup Stats By Sector 

Startup statistics differ greatly by sector and it’s important to seek out industry specific figures when making predictions or forecasts. 

• 99.9% of all private sector businesses in the UK are SMEs (GOV.UK, 2019)
• 69% of service based businesses have a startup budget below £5,000 (Institute of Directors, 2016)
• 67% of creative businesses have a startup budget below £5,000 (Institute of Directors, 2016)
• 75% of recruitment companies have a startup budget over £10,000 (Institute of Directors, 2016)
• 75% of finance businesses have a startup budget over £10,000 (Institute of Directors, 2016)
• In the private sector, SMEs account for 61% of employment (startups, 2022)

“99.9% of all private sector businesses in the UK are SMEs”

Startup Stats By Location 

Startup stats that focus on location tell a very interesting story about the current state of funding, entrepreneurship and wealth across different areas of the UK. As you’d expect, London is the home of the startup but is that changing?

• London is above the national average for businesses, 1,563 businesses for every 10,000 adult residents (GOV.UK, 2019)
• In the UK, there are 1,059 businesses per 10,000 residents (GOV.UK, 2019)
• London (1.1 million) and the South East (940,000) had the most private sector businesses, accounting for 35% of the UK business population (GOV.UK, 2019)
• The North East had the lowest private sector businesses of any English region with just 152,000 (GOV.UK, 2019)
• One in three businesses are in London or the South East. (GOV.UK, 2019)

“One in three businesses are in London or the South East”

Owner Profile 

What does the standard small business owner in the UK look like and how does this differ to the rest of the world? Startup owner profile stats can highlight notable trends on age, race, gender, education and more.

• The majority of UK entrepreneurs are in their 40’s (Startups)
• Only 14% of UK SMEs are woman-led (Startups)
• Just 11% of Startup owners have no educational qualifications (Startups)
• Only 8% of UK small business employers are MEG-led; that is led by a member of a minority ethnic group (Startups)
• Small businesses in London are more likely to be minority ethnic group-led, at 22%, compared to 8% overall. (Startups)
• Over 95% of small business owners don’t have a basic understanding of how search engines work (Institute of Directors, 2016)

“Over 95% of small business owners don’t have a basic understanding of how search engines work”

Sources

• https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/businessdemography/2018
• https://www.gov.uk/government/news/uk-company-statistics-2018-to-2019
• https://www.gov.uk/government/statistics/business-population-estimates-2019
• https://startups.co.uk/the-average-entrepreneur/
• https://smeloans.co.uk/64-percent-of-britains-workforce-want-to-start-a-business/
• https://www.thecompanywarehouse.co.uk/downloads/2016-uk-startup-funding-report.pdf
• https://moneyzine.com/startup-resources/small-business-statistics/
• https://www.business4beginners.co.uk/uk-small-business-statistics/
• https://www.money.co.uk/business/business-statistics/small-business-statistics

Previously known as Bing Ads, Microsoft Ads is a self-serving online advertising platform that provides the closest alternative to Google Ads. Microsoft’s Bing holds the second biggest search engine market share in the UK, behind Google. 

Microsoft Ads lets you advertise on a network of search engines. This consists of three, all owned by Microsoft: Bing, Yahoo and DuckDuckGo (as well as a few other smaller ones). This is known as the Microsoft Search Network. 

Microsoft Ads doesn’t get quite as much attention as Google Ads. However, there are multiple benefits to using Microsoft Ads to digitally advertise your business. Let’s explore these further…

Who Uses The Microsoft Search Network?

How Much Traffic Do Microsoft Ads Get? 

Bing, Yahoo and DuckDuckGo (the search engines within the Microsoft Search Network) do get a huge amount of traffic:

• 14.7 billion monthly desktop searches, globally 
• 724 million worldwide desktop users 
• Over 19 million PC users in the UK alone
• 14.4% of the global PC market shares

Demographic

When advertising on Microsoft Ads, it’s important to know who uses the Microsoft search engines. 71% of Bing users are 35 or older. Here are some more stats on the Microsoft Search Network’s demographic within the UK: 

• 42% of users are female and 58% are male
• Around 50% of users are married
• 61% of users have children living at home
• 51% of users are university graduates 
• 10% of users identify as LGBTQ+ 

Microsoft Ads Vs Google Ads

Microsoft Ads and Google Ads are very similar and the concept behind both is the same. These are both pay-per-click platforms to help reach a specific audience, increase revenue and drive traffic. But what are the main differences? 

Google Ads uses two advertising networks. These are the Search Network and the Display Network. When Advertising on Microsoft Ads, your ad will be shown on all search engines within the Microsoft Search Network. 

A big difference between the two platforms is the cost of a campaign. Bing PPC has a lot less competition for advertisers bidding. This causes clicks to be cheaper, allowing you to get more out of your budget. According to WordStream, the average CPC for Microsoft Ads is around £1.25. Google Ads can range from 48p (Display Network) to £1.95 (Search Network).

Other differences between the two platforms include: 

• CTRs – Usually higher on Microsoft Ads, compared to Google Ads. 
• Reach – Google Ads has a higher reach, compared to Microsoft Ads.
• Remarketing Conversion Rates – Although Google Ads has a higher conversion rate overall, Microsoft remarketing ads often achieve a higher conversion rate, particularly for B2B decision-makers.  

Is It Worth Advertising On Microsoft Ads? 

If you are advertising on Google Ads, we would also recommend advertising on Microsoft Ads. According to Instapage, Microsoft Ads “reach 63 million searchers that aren’t reached with Google Ads”.

Microsoft has around 8% share of the UK search market in 2022. Advertising through the Microsoft Ads network is a great opportunity for businesses to reach more people alongside other ad platforms such as Google. 

Looking to get started on Microsoft Ads? Get in touch today.

Sources: 

• https://optimyzd.co.uk/why-you-should-consider-microsoft-ads-in-2022/
• https://instapage.com/blog/bing-ads-vs-google-ads
• https://www.vertical-leap.uk/blog/how-much-do-google-ads-cost/
• https://www.internetmarketingteam.co.uk/who-uses-bing-how-age-demographics-affect-how-someone-searches-on-the-internet/

In the rapidly evolving world of artificial intelligence, OpenAI’s language model, ChatGPT, stands as a testament to how far we’ve come. As we delve into the landscape of AI in 2023, it’s important to understand the specific contributions and progress of this dynamic technology. This article, titled “26 Key ChatGPT Statistics & Facts 2023“, will provide a comprehensive look at the latest data, revealing the full extent of ChatGPT’s capabilities, its limitations, and the diverse range of applications it supports. Join us as we explore this transformative technology, painting a vivid picture of how it’s reshaping the digital world and revolutionising human-computer interaction. There’s no need to be scared…yet.

ChatGPT User Growth and Reach Stats

• ChatGPT successfully reached over 100 million users globally.
• It accomplished this feat of gaining one million users within five days post-launch.
• The United States is the leading country in terms of user base, contributing over 15% of the users.
• An astounding user base growth and website traffic was achieved within a record span of three months from February to April 2023.
• To put this growth into context, it took Instagram about 2.5 months and Netflix nearly 3.5 years to gain the first million users that ChatGPT managed in just five days.
• As per a YouGov survey, between January 2023 and now, 17% of individuals aged 30 to 44 years and 15% of those aged 18 to 29 years have used ChatGPT.
• Despite its global reach, ChatGPT access is restricted in several countries, including Russia, China, Iran, Ukraine, Venezuela, Belarus, and Afghanistan.

ChatGPT Website Traffic and Source Stats

• The site, openai.com, enjoys around 1 billion monthly visits.
• According to SimilarWeb, the site chat.openai.com receives approximately 1.8 billion visits over the past 30 days, with each visitor viewing about 6.22 pages per visit and spending around 8 minutes and 32 seconds on the website.
• The majority of visits to ChatGPT, approximately 88%, are direct while social media contributes to about 4.61% of the traffic.
• Of the social media traffic, YouTube is the leading source, driving around 57.01% of visits.

ChatGPT Model Details & Operational Stats

• ChatGPT’s model comprises around 175 billion parameters and has been trained on approximately 300 billion words.
• It handles an average of 10 million queries daily, with a daily operational cost estimated to be around $100,000.

ChatGPT Financial Forecasts & Investments Stats

• Financial forecasts project that ChatGPT will earn $200 million by the end of this year and could reach up to $1 billion by the end of 2024.
• Microsoft has shown confidence in ChatGPT’s capabilities with a substantial $1 billion investment.

ChatGPT Future Prospects:

• The ChatGPT platform sets unprecedented records in user growth, paving the way for a promising future in the field of AI chatbots.
• Enhanced comprehension: Future iterations could better understand nuanced queries and instructions.
• Multimodal capability: Potential for integration with visual and auditory inputs.
• Real-time interaction improvement: Increased processing power may allow faster responses.
• Personalised experience: Advanced versions could learn from user interactions for tailored responses.
• Greater integration: Possibility of wider integration with different software and hardware platforms.
• Regulatory adherence: Emerging regulations and ethical guidelines could shape AI development.
• Human-AI collaboration: Future versions could be more adept at assisting users with problem-solving.
• Broadened language support: Possibility of supporting a wider variety of languages and dialects.
• Industry-specific applications: Development of tailored versions for professional domains.
• Bias and safety improvements: Continued research could lead to reductions in system biases and increase AI safety.

ChatGPT continues to redefine the capabilities of AI technology in 2023. Its consistent evolution, marked by impressive growth statistics, underlines the paradigm shift in how humans interact with AI. The usage statistics illustrate its worldwide acceptance and impact across various sectors. However, the figures also underscore the importance of constant advancements and ethical considerations in AI development. The application and learning abilities of ChatGPT make it a valuable tool, enabling profound changes in areas ranging from customer service to content creation, education, and beyond. As we look to the future, the statistics and facts about ChatGPT will undoubtedly continue to impress, as it remains at the forefront of AI innovation.

Sources

• https://www.demandsage.com/chatgpt-statistics/
• https://www.tooltester.com/en/blog/chatgpt-statistics/ 
• https://explodingtopics.com/blog/chatgpt-users 
• https://openai.com/