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UK Business Creation Drops To Lowest Rate Since 2010, Raising Economic Concerns

The United Kingdom witnessed its slowest rate of new business creation in over a decade last year, signalling potential challenges for long-term economic growth and productivity. Official data from the Office for National Statistics (ONS), released Monday, showed that 316,000 businesses were started in 2023, a decline from 337,000 in 2022. This dropped the “business birth rate” — the percentage of new businesses relative to the total number of active businesses — to 11.0%, its lowest level since 2010.  

Business closures also decreased, with 309,000 shutting down in 2023 compared to 349,000 in 2022, reducing the “business death rate” to 10.8%, the lowest since 2020.  

Economists warn that declining rates of both business creation and closure could negatively impact productivity and innovation. Established businesses often struggle to adopt new technologies or innovate at the same pace as startups.  

The ONS recently reported that UK output per hour worked in Q3 2024 was 1.8% lower than a year earlier, with just a 2.0% cumulative increase since the COVID-19 pandemic began. These figures, tied to productivity stagnation, may see revisions as new population data becomes available.  

However, there was a positive trend in high-growth businesses. The proportion of firms with at least 10 employees that expanded their workforce by 20% annually for three consecutive years rose to 4.7% in 2023, the highest in five years.  

The newly elected Labour government has pledged to make the UK a leader in per-capita economic growth among G7 countries. However achieving this goal may require addressing barriers to business growth and encouraging entrepreneurship beyond small-scale startups, which often have limited productivity impacts unless they scale up.  

While the hospitality sector remains a key area for new businesses, the broader startup ecosystem’s growth will be essential to strengthening the UK economy in the years ahead.

Forbes Middle East Unveils 100 Most Powerful Businesswomen Of 2025

Forbes Middle East has unveiled its much-anticipated 2025 ranking of the region’s top businesswomen, spotlighting influential leaders reshaping industries and driving meaningful transformation. The list was based on business size, individual accomplishments, leadership impact, and corporate social responsibility initiatives.

Top Spot For Hana Al Rostamani

For the third consecutive year, Hana Al Rostamani, Group CEO of First Abu Dhabi Bank (UAE’s largest bank by assets), claims the top position. In addition to retaining her position in the Forbes Middle East ranking, she was also featured on Forbes’ 2024 list of the World’s Most Powerful Women, securing the 60th position globally. Under her leadership, the bank achieved an impressive $3.5 billion in net profits and $334.8 billion in assets in the first nine months of 2024.

Rising Stars In The Top 10

Shaikha Khaled Al Bahar of NBK Group and Shaista Asif, cofounder and Group CEO of PureHealth Holding, take the second and third spots respectively, completing the top three.

The top 10 remains largely unchanged from last year, with Tayba Al Hashemi of ADNOC Offshore, Alisha Moopen of Aster DM Healthcare GCC, and Suzanne Al Anani of Dubai Aviation Engineering Projects (DAEP) making their debut in the top 10. In total, 27 new leaders have joined the list this year.

A Diverse And Powerful Group Of Women

This year’s list features 100 women from 32 sectors and 29 nationalities, underlining the diversity of talent driving the region’s progress. The banking and financial services sector leads with 25 entries, followed by healthcare and technology with nine each, and venture capital with five. Remarkably, 40% of the top 10 women are from the banking and financial services sector. Notably, Shaista Asif (PureHealth Holding) and Alisha Moopen (Aster DM Healthcare GCC) are the only non-Arab women in the top 10.

UAE Leads With 46 Leaders

The UAE continues to dominate, with 46 of the women on the list hailing from the country, solidifying its status as a global business hub. Egypt follows with 18 influential women, and Saudi Arabia claims nine entries. Egyptians lead in representation, followed by Emiratis and Lebanese women.

Empowering Women Through Initiatives

Several of the leaders have focused on upskilling and creating opportunities for women. Susana Rodriguez Puerta launched the ‘sAIdaty’ initiative in collaboration with the Dubai Business Women Council, aimed at providing 500 female council members in the UAE with AI skills. Similarly, Lamia Tazi of SOTHEMA collaborated with the Foundation for Research, Development, and Innovation in Science and Engineering to provide scholarships to PhD students from low-income backgrounds.

Click here for the full list.

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