Scotland recorded the fastest rate of new business incorporation growth of any UK nation or region in the first half of 2026, according to new analysis from the Barclays Regional Investment Map, which tracks company funding and growth across the UK.
The country saw 20,872 new companies incorporated during the period, a 3.8 per cent rise on the second half of 2025. That growth rate outpaced every other UK region, reinforcing a trend seen across recent Barclays and Beauhurst datasets, which have repeatedly placed Scotland among the strongest performers for startup activity over the past two years.
Grant funding to Scottish businesses also rose sharply, with £40.7m secured in the first half of 2026, up 33.5 per cent on the previous six months. The increase places Scotland among the UK’s stronger grant funding markets, with the money going toward innovation, commercialisation and growth projects.
The country’s university spinout sector continued to expand, with 369 spinout companies now based in Scotland, up 4.2 per cent since the fourth quarter of 2025. That gives Scotland the largest spinout population of any UK region outside London and the South East, a position it has held consistently through 2025 as successive quarterly Barclays figures have shown steady growth in the sector.
Jonathan Reynolds, secretary of state for business, innovation, science and trade, said: “This is terrific news for UK businesses and shows how bringing business and innovation together through the Industrial Strategy can help drive economic growth and create jobs. My ambition does not stop here. I want to go further by bringing good growth to every postcode and provide investors with the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond.”
David Morrison, business growth and relationship leader at Barclays, said: “These figures show Scotland continuing to build real momentum as a place to start, scale and commercialise innovative businesses. The growth in new incorporations is particularly encouraging and points to confidence among entrepreneurs and founders across the country. Scotland’s strong spinout base is also a real advantage. With world-class universities, a growing innovation ecosystem and increasing grant funding, Scotland is well placed to turn research, ideas and ambition into high-growth businesses.”
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Across the UK, separate analysis from Barclays Eagle Labs and Beauhurst found businesses attracted £14.4bn in equity investment during the first half of 2026, up 26 per cent on the second half of 2025. The UK’s eight Industrial Strategy sectors, spanning advanced manufacturing, clean energy, creative industries, digital and technology, financial services, life sciences, professional and business services, and defence, drew a combined £13.4bn in fundraising over the same period.
Digital and technology remained the dominant investment category nationally, attracting £11.6bn and accounting for 80.8 per cent of total Industrial Strategy sector investment, with the sector’s business base expanding in every UK region.
The number of active companies rose across all UK regions in the first half of the year, taking the national total to around 5.51 million. Scotland’s active company base reached 314,873, up 2.4 per cent since the fourth quarter of 2025. Within the Industrial Strategy sectors, Scotland’s largest business populations are in professional and business services (21,524 firms), creative industries (12,905), digital and technologies (11,212) and financial services (6,243).
