The UK’s self employed survival rates for 2025

Ready for a fresh start where no two days are the same? Starting your own business could be just what the doctor ordered. But if you’re new to entrepreneurship, becoming self employed in the UK can feel like a minefield. 

As of 2023, 4% of new businesses ceased trading by the end of the first year and 50% within just three years of opening, which can leave you feeling apprehensive. But you’ll be pleased to hear that many self-employed professionals do survive and thrive. In fact, we’ll prove it to you. We’ve uncovered the business survival rates for those self employed, using Companies House data. With this insight, you’ll know which industries are most risky and which are most resilient, to improve your chances of business success.

What is self employment?

Being self-employed means earning a living from your own business, rather than working for an employer. So you’re essentially working for yourself. 

Those who are self-employed are usually highly skilled in a particular area or industry, such as writers, tradespeople or lawyers, and many call themselves freelancers. Ultimately, those who are self-employed run their businesses for themselves and are responsible for its success or failure. 

Top performers: The best self employed survival rates

When it comes to new business survival rates for those self-employed, certain professions came out on top. The best-performing self-employed job in recent years is dentists, with 1,595 new dentistry businesses being set up in 2021, and 1,347 still active in 2024 - an impressive 84.5%. 

Other resilient business areas include vets, with 68.7% of businesses that formed in 2021 still thriving in 2024, and solicitors with 68.4%. A key similarity between these professions is their nature - each of them offers an essential service to the public. Dentists and vets provide essential medical care, while solicitors offer legal advice and support. These services are consistently in demand and aren’t affected by popularity, trends or shifting consumer preferences. 

The same can be said for electrician businesses, with 59% of those formed in 2021 still going strong today. Electrical work is a necessity in both residential and commercial environments, so it’s no surprise that so many electrician businesses are successful. There’s also a consistent need for electricians, whether it’s new construction, emergency repairs or renovations, their services are always in demand. 

To improve your chances of business success, you may want to focus on an industry or field that is consistently in demand or essential, to ensure your services remain valuable and competitive, regardless of economic conditions or changing market trends.

How to thrive as a self employed professional in 2025

If you’re looking to start your own business, you want it to flourish, right? After all, without a solid cash flow and regular customers, you’ll struggle to maintain financial stability and have the grounds to grow your enterprise. 

We’ve put together some simple but effective tips to boost your business’ longevity and ensure success. 

Master financial planning 

Financial stability is the backbone of any successful business - without it, you won’t have the funds to earn an income or watch it grow.

Budgeting wisely is key. Track your income and expenses carefully to ensure you have enough to live on and a budget for growth opportunities. Try to build an emergency fund where you can - this serves as a safety net so you have the funds set aside should you encounter any challenges, such as market fluctuations or emergencies. Writing a business plan can help you with your financial planning. You’ll cover forecasted sales, cash flow and expenses, so you have a complete picture of your business’ finances.

Looking to grow your financial knowledge? Working with an accountant or financial adviser can help you manage your taxes, streamline your cash flow and give you the confidence to manage your finances effectively. 

Prioritise networking and your connections

Remember, every business owner in the world was once in your position. Use your network to your advantage and build strong relationships you can rely on. 

You can use social media platforms like LinkedIn and Instagram to showcase your expertise and connect with like-minded professionals. There’s more to networking than just digital connections - you could attend conferences, networking events and workshops to get your name out there and even find new job opportunities. 

Invest in ongoing education and mentorship

There’s no such thing as knowing too much. Investing in your education can work wonders for your business. Keep up with the latest trends by reading industry publications, attending webinars and following experts in your field. Not only will this keep you equipped with changes and advancements in your industry, but it also increases your marketability. 

You could even find a mentor to support you on your business journey and help you grow your skills. You’ll have an experienced guide at hand to offer valuable insights, advice and experience to guide you towards business success. 

Develop your online presence

Having an online presence as a business is no longer optional. Having a professional website to showcase your services is crucial to get your business’ name out there and connect with potential customers. Make sure your website is optimised for search engines, known as SEO, to attract potential clients and increase your business visibility. Use social media platforms to build brand awareness and make your customers remember you. A strong digital footprint is crucial for building a reputation and standing out from your competitors. 

Ready to kickstart your business? 

One thing’s for sure from our findings - the more your customers need or value your business services, the more likely it is that your business will thrive. Let’s take the performing arts sector for example - while not an essential service, performing arts remains a thriving business venture by providing entertainment and escapism, with 58.1% of performing arts businesses still thriving three years after formation. 

The top-performing professions often focus on offering essential services that are consistently in demand, ensuring a steady stream of clients regardless of economic change or market trends. But there’s more to business success than the sector you operate in. Focusing on financial planning, investing in your education and developing a strong online presence is crucial for business growth as a self employed professional. 

So, what are you waiting for? If you’re ready to start your self-employed business venture, we’d love to be a part of your journey. Start Up A-Z is here to support you every step of the way. You can form your business for free (yes, really!) and you’ll have our support there whenever you need it. We believe you have what it takes to thrive.