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The number of scale-up businesses in the UK has declined for the second year in a row.
There were 128,760 scale-ups in 2025, down from a peak of 129,080 in 2023, according to analysis of Office for National Statistics data by Vestd.
It’s the second annual decrease in a row. In 2024, there were 128,960 scale-ups, which are defined as firms with between 20 and 249 employees that have moved beyond early-stage growth and are actively scaling their operations.
The decline was reflected across most of the UK, with Scotland, Wales and Northern Ireland all having a drop in the number of scale-ups. England did experience growth, although it was minimal at 0.01%.
Regionally, London had the highest concentration of scale-ups and was the only region to experience growth, with scale-ups in the capital rising by 1.73%.
There were also signs of emerging momentum in parts of the North West. While Manchester had a drop in the number of scale-ups (0.75% in 2025), Liverpool and Stockport saw a 1.28% and 0.91% increase, respectively.
Ifty Nasir, founder and CEO of Vestd, said:
“Our findings on the decline of scale-ups over the last year are particularly concerning, as fewer businesses successfully scaling can translate into fewer employment opportunities, reduced regional investment, and an overall less dynamic entrepreneurial landscape.
“However, businesses can take practical steps to support their next stage of growth, from securing investment to attracting talent and structuring ownership effectively.”
“Scale-ups contribute a significant amount to the UK economy, generating a reported £2.19 trillion in the last year. If this downward trend continues, there’s a significant risk that it will negatively impact future jobs and economic growth.
“These findings echo the concerns raised by the House of Lords Science and Technology Committee, which warned that the UK’s long-standing ability to scale innovative businesses has reached “crisis point” and the country’s failure to scale up is causing the economy to “bleed to death”.
“Unless more is done to help ambitious companies grow, the UK’s reputation as a place to build and scale a business will come under increasing pressure.”
