Accredited official statistics

DCMS economic estimates: Business demographics, 2024 - main report

Published 5 December 2024

1. Background

• Release date: 5 December 2024
• Next release: Winter 2025
• Geographic coverage: United Kingdom and ITL1 regions
• Time coverage: March 2019 to March 2024
• Responsible analyst: Lydia Ndakotsu

This release provides estimates of the number, employment size, and turnover of businesses within the DCMS sectors (excluding civil society). The number of employees and turnover generated are both measures of business size. Data on the number of businesses and business sites is rounded to the nearest five.

The DCMS sectors covered in this release are:

• creative industries
• cultural sector
• gambling
• sport
• tourism industries, constructed on a different basis to the tourism sector estimates in our other economic estimates releases

In the majority of the DCMS economic estimates publications the estimates of tourism are based on results from the Tourism Satellite Account (TSA), which estimates the direct economic impact of tourism (or tourists) on the economy as a proportion of each standard industrial class. The Tourism Satellite Account produces estimates of the number of enterprises in the Tourism sector, however these estimates do not provide any further business demography information for use in this release. The figures in this release are therefore based on a “tourism industries” approach, which counts any establishment in an industry for which the principal activity is a tourism characteristic activity, i.e. it includes 100% of the businesses in a subset of the standard industrial classes. As such, the estimates for the tourism industries in this release are larger than they might otherwise have been under a satellite account approach and therefore account for a greater proportion of the DCMS sector total than in other economic estimates publications.

The terms “DCMS sectors (excluding/excl. civil society)” and “included DCMS sectors” are used interchangeably in this report. This is to reflect that no estimates are available for the civil society sector in this release, because civil society organisations are not identifiable in the Inter-Departmental Business Register (IDBR) dataset and therefore business demographic estimates cannot be produced on the same basis. Please note that the DCMS sectors are not mutually exclusive; industries may contribute to and be classified as more than one sector. Due to these overlaps, summing over the number of businesses in individual sectors would give a total greater than the actual value. When calculating the DCMS sector total, these overlaps are accounted for and businesses are only counted once rather than multiple times.

2. Headline findings

2.1 DCMS sectors

Number of businesses in the included DCMS sectors

In March 2024, the total number of businesses in the included DCMS sectors was 590,695. This represented 21.7% of the 2,724,770 businesses registered in the UK.

Figure 1: Estimated number of registered businesses in the included DCMS sectors and the UK overall, March 2024.

Please note that due to overlaps between the DCMS sectors, for example where some industries are simultaneously classed as being in the creative industries and cultural sector, the sum of totals will not add up to the included DCMS sectors totals and the sum of proportions will not equal 100%.

Changes over time in the number of businesses in the included DCMS sectors

The number of businesses in the included DCMS sectors in March 2024 increased slightly by 1.0% from March 2023 but was similar to the number in March 2019 (+0.1%). In comparison, the number of UK businesses overall in March 2024 was similar to both March 2023 (-0.1%) and March 2019 (+0.2%). 

The increase in the included DCMS sectors between March 2023 and March 2024 was mainly driven by an increase in the number of businesses in the tourism industries, creative industries and the overlapping cultural sector. However, trends over time vary between sectors: 

• businesses in the cultural sector saw the highest relative growth (+3.3%) between March 2023 and March 2024 and also increased (+12.7%) between March 2019 and March 2024.
• creative industries businesses slightly increased (+1.0%) from March 2023 to March 2024. However, the sector saw a decrease (-9.9%) between March 2019 and March 2024.
• businesses in the tourism industries slightly increased (+1.2%) from March 2023 to March 2024 and also saw an increase (+9.7%) between March 2019 and March 2024.
• sports sector businesses increased (+1.8%) from March 2023 to March 2024 and also increased (+12.8%) between March 2019 and March 2024.
• gambling sector businesses decreased (-6.4%) from March 2023 to March 2024 and also decreased (-17.4%) between March 2019 and March 2024.

Figure 2: Index of total number of businesses in the individual DCMS sectors, March 2019 to March 2024, March 2019 = 100

Please note that where there is a change in the number of businesses, it does not necessarily mean there has been a corresponding change in the sector’s economic output.

Size of businesses in the included DCMS sectors

Business size can be measured either as the number of employees, or turnover generated.

Size of business by number of employees in the included DCMS sectors

In March 2024, the vast majority (87.4%) of businesses in the included DCMS sectors fell into the micro (0-9) employment band, a lower proportion than UK registered businesses in general (89.1%). In each included DCMS sector, the majority of businesses were in the micro (0 to 9) employment band, however, there is a variation between sectors. The cultural sector and creative industries had the largest proportion of micro businesses (95.3% and 93.4% respectively) while the gambling sector had the lowest proportion (64.2%).

Figure 3: Percentage of businesses for the included DCMS sectors and all UK registered businesses, March 2024

Between March 2019 and March 2024, the proportion of micro businesses (0 to 9 employees) in the included DCMS sectors has decreased slightly from 88.3% to 87.4%. Over the same period, the proportion of small businesses (10 to 49 employees) increased from 10.1% to 10.9%. The proportion of medium (50 to 249 employees) and large (250+ employees) businesses have remained relatively stable.

Size of business by annual turnover in the included DCMS sectors

In March 2024, businesses in the included DCMS sectors were more likely to be in a lower turnover band than UK businesses in general. 72.4% of the included DCMS sector businesses have a turnover of less than £250,000, compared to 66.1% of UK businesses in general. This was true for each of the included DCMS sectors except gambling, where 42.0% of registered businesses had a turnover of less than £250,000.

Figure 4: Distribution of businesses in the included DCMS sectors and overall UK registered businesses by annual turnover (£000s), March 2024

Since March 2019, the proportion of businesses in the included DCMS sectors with a turnover of less than £250,000 has fallen from 77.6% to 72.4% in March 2024. Over the same period, the proportion of businesses with a turnover of over £1 million has increased from 6.2% to 7.8%.

This is a similar trend to UK businesses overall where the proportion of businesses with a turnover of less than £250,000 fell from 71.0% in March 2019 to 66.1% in March 2024 and the proportion of businesses with a turnover band of over £1 million increased from 9.3% in March 2019 to 11.2% in March 2024.

Regional distribution of business sites in the included DCMS sectors

In March 2024, there were 677,130 business sites in the included DCMS sectors, representing 21.3% of the 3,173,655 registered business sites in the UK.

Business sites in the included DCMS sectors varied in their distribution across regions (as defined by the International Territorial Level 1, or ITL1, geographic classification of administrative areas), with those in some sectors (such as sport and gambling) being more evenly spread around the UK than others (such as the creative industries).

Overall, included DCMS sectors were more concentrated in London compared to the UK economy as a whole, with 24.1% business sites in DCMS sectors located in London (compared to 18.6% for UK business sites overall). Northern Ireland was the region with the lowest number of business sites in the DCMS sectors (2.0%), whereas the North East was the region with the lowest number of UK business sites overall (2.8%). 

The proportion of business sites located in London, varies by sector. The cultural sector and the creative industries have the highest proportion of business sites in London (40.3% and 33.9% respectively) and the sport sector has the lowest proportion (11.5%). 

The regional distribution of included DCMS sector businesses has been relatively stable since March 2019, although the gap between the regions with the largest and smallest number of business sites (London and Northern Ireland) has slightly narrowed.

Figure 5: Regional distribution of business sites in DCMS sectors (excl civil society), March 2024

2.2 Creative industries

Number of businesses in the creative industries

In March 2024, there were 268,080 businesses in the creative industries, making up 45.4% of all businesses in the included DCMS sectors and 9.8% of UK registered businesses in general. The number of businesses in the creative industries has decreased by 9.9% from March 2019 to March 2024 and increased slightly by 1.0% between March 2023 and March 2024. 

Size of businesses by number of employees in the creative industries

In March 2024, the size distribution of businesses in the creative industries varied from that of registered businesses in the UK overall. The vast majority (93.4%) of businesses in the creative industries fell into the micro (0-9) employment band, a higher proportion than UK registered businesses in general (89.1%).

Size of businesses by annual turnover in the creative industries

In March 2024, businesses in the creative industries were more likely to be in a lower turnover band than UK businesses in general and more likely to be in a lower turnover band than the included DCMS sectors overall. 78.2% of creative industries businesses have a turnover of less than £250,000, compared to 66.1% of UK businesses in general and 72.4% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the creative industries

In March 2024, there were 277,005 business sites in the creative industries, representing 40.9% of the 677,130 business sites in the included DCMS sectors and 8.7% of the 3,173,655 registered business sites in the UK. Of the business sites in the creative industries, 33.9% were in London, a higher proportion than for UK business sites overall, of which 18.6% were in London.

2.3 Cultural sector

Number of businesses in the cultural sector

In March 2024, there were 82,350 businesses in the cultural sector, making up 13.9% of all businesses in the included DCMS sectors and 3.0% of UK registered businesses overall. The number of businesses in the cultural sector has increased from March 2019 to March 2024 by 12.7% and by 3.3% between March 2023 and March 2024.

Size of businesses by number of employees in the cultural sector

In March 2024, the vast majority (95.3%) of businesses in the cultural sector fell into the micro (0-9) employment band, a higher proportion than 89.1% of UK registered businesses in general.

Size of businesses by annual turnover in the cultural sector

In March 2024, businesses in the cultural sector were more likely to be in a lower turnover band than UK businesses in general and the included DCMS sectors overall. 77.1% of businesses in the cultural sector had a turnover of less than £250,000, compared to 66.1% of UK businesses in general and 72.4% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the cultural sector

In March 2024, there were 88,055 business sites in the cultural sector, representing 13.0% of the 677,130 DCMS sector business sites and 2.8% of the 3,173,655 registered business sites in the UK. 40.3% of these business sites were in London, a higher proportion than 18.6% of UK business sites overall. 

2.4 Gambling

Number of businesses in the gambling sector

In March 2024, there were 880 businesses in the gambling sector, making up 0.1% of all businesses in the included DCMS sectors and 0.03% of UK registered businesses in general. This number decreased steadily by 17.4% from March 2019 to March 2024 and by 6.4% between March 2023 and March 2024. 

Size of businesses by number of employees in the gambling sector

In March 2024, businesses in the gambling sector varied in size distribution to the UK registered businesses in general. The majority (64.2%) of businesses in the gambling sector fell into the micro (0 to 9) employment band, a lower proportion than 89.1% of UK registered businesses in general.

Size of businesses by annual turnover in the gambling sector

In March 2024, businesses in the gambling sector were less likely to be in a lower turnover band than UK businesses in general and the included DCMS sectors overall. 42.0% of gambling businesses have a turnover of less than £250,000, compared to 66.1% of UK businesses in general and 72.4% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the gambling sector

In March 2024, there were 9,210 business sites in the gambling sector, representing 1.4% of the 677,130 DCMS sector business sites and 0.3% of the 3,173,655 registered business sites in the UK. 21.1% of these business sites were in London, a higher proportion than 18.6% of UK business sites overall.

2.5 Sport

Number of businesses in the sport sector

In March 2024, there were 44,205 businesses in the sport sector, making up 7.5% of all businesses in the included DCMS sectors and 1.6% of UK registered businesses overall. The number of businesses in the sports sector increased by 12.8% from March 2019 to March 2024 and by 1.8% between March 2023 and March 2024.

Size of businesses by number of employees in the sport sector

In March 2024, businesses in the sport sector had a different size distribution to the UK registered businesses in general. The vast majority (84.7%) of businesses in the sport sector fell into the micro (0-9) employment band, a lower proportion than 89.1% of UK registered businesses in general.

Size of businesses by annual turnover in the sport sector

In March 2024, businesses in the sport sector were more likely to be in a lower turnover band than UK businesses in general and less likely to be in a lower turnover band than the included DCMS sectors overall. 70.1% of sports sector businesses have a turnover of less than £250,000, compared to 66.1% of UK businesses in general and 72.4% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the sport sector

In March 2024, there were 52,120 business sites in the sport sector, representing 7.7% of the 677,130 DCMS sector business sites and 1.6% of the 3,173,655 registered business sites in the UK. 11.5% of these business sites were in London, a lower proportion than 18.6% of UK business sites overall.

2.6 Tourism industries

Number of businesses in the tourism industries

In March 2024, there were 327,835 businesses in the tourism industries, making up 55.5% of all businesses in the included DCMS sectors and 12.0% of UK registered businesses in general. The number of businesses in the tourism industries has increased steadily from March 2019 to March 2024 by 9.7% and by 1.2% between March 2023 and March 2024.

Size of businesses by number of employees in the tourism industries

In March 2024, businesses in the tourism industries followed a different size distribution to the UK registered businesses in general. The vast majority (83.6%) of businesses in the tourism industries fell into the micro (0-9) employment band, a lower proportion than 89.1% of UK registered businesses in general.

Size of businesses by annual turnover in the tourism industries

In March 2024, businesses in the tourism industries were slightly more likely to be in a lower turnover band than UK businesses in general and less likely to be in a lower turnover band than the included DCMS sectors overall. 68.3% of tourism industries businesses have a turnover of less than £250,000, compared to 66.1% of UK businesses in general and 72.4% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the tourism industries

In March 2024, there were 401,215 business sites in the tourism industries, representing 59.3% of the 677,130 business sites in the included DCMS sectors and 12.6% of the 3,173,655 registered business sites in the UK. 19.6% of these business sites were in London, slightly higher than 18.6% of UK business sites overall.

3. About the data

DCMS economic estimates are accredited official statistics. Accredited official statistics are called National Statistics in the Statistics and Registration Service Act 2007. These official statistics were independently reviewed by the Office for Statistics Regulation in June 2019. They comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics and should be labelled ‘accredited official statistics’.

When we reference a national total or UK businesses in general in this release, this refers to all businesses registered with HM Revenue & Customs (HMRC) for Value Added Tax (VAT) and/or Pay As You Earn (PAYE) in the UK. 

We use a snapshot of the Inter-Departmental Business Register (IDBR) taken annually in March to generate estimates of DCMS sector business demographics. Estimates in this release are not directly comparable to DCMS sector business demographics estimates published by DCMS in 2021 and previous years as they were based on a separate data source. 

! We have made a number of changes to DCMS sector economic estimates: business demographics in recent years:

• previous reports have included data on charities registered with the Charity Commission of England and Wales, Community Interest Companies (CICs) and the now-discontinued Public Service Mutuals which were defined as civil society organisations
• previous releases have included estimates of the turnover produced by businesses in each employment band and the number of businesses by foreign-owned status, both of which are not available in this release due to the change in data source from the Annual Business Survey (ABS) to the Inter-Departmental Business Register (IDBR)

Additional information about the change in data source from the ABS to the IDBR in 2022 can be found in the source data change summary note.

We welcome any views on these changes to our email evidence@dcms.gov.uk.

Further information on the methodology used to produce these economic estimates, along with a glossary of terms, is available in the methodology and quality assurance report accompanying this release. 

4. Further information

DCMS has developed a suite of Economic Estimates to understand the economic impact its sectors have on the UK economy. In combination with other economic indicators, these estimates help build a comprehensive picture of the UK economy, and of the DCMS Sectors’ importance within it. 

The responsible statistician for this release is Lydia Ndakotsu. For enquiries on this release, please email evidence@dcms.gov.uk.

For general enquiries contact: Department for Culture, Media and Sport, 100 Parliament Street, London, SW1A 2BQ. For media enquiries contact: 020 7211 2210.

DCMS statisticians can also be followed on X via @DCMSInsight.

Our statistical practice is regulated by the Office for Statistics Regulation (OSR). OSR sets the standards of trustworthiness, quality and value in the Code of Practice for Statistics that all producers of official statistics should adhere to. You are welcome to contact us directly with any comments about how we meet these standards. Alternatively, you can contact OSR by emailing regulation@statistics.gov.uk or via the OSR website.