Self-employed workers in finance and property earn more than seven times the UK’s average self-employment income, according to new analysis examining sector earnings and business survival rates across the country.
Research by Protectivity, based on UK government data, finds that self-employed workers in Financial, Insurance, and Real Estate activities earn an average annual income of £167,606. Legal and Accounting activities follow closely behind with average earnings of £166,071.
Both sectors sit far above the UK’s average self-employed income of £24,096, illustrating the wide gap in earning potential across industries.
Small and medium-sized enterprises account for 99.8% of all UK businesses, government figures show, while sole proprietorships represent around 56% of the business population. The data also highlights continued growth in entrepreneurship, with 73,450 new businesses added to the Inter-Departmental Business Register in the third quarter of 2025 alone.
Beyond the two highest earning sectors, income levels fall sharply. Human Health and Social Work activities report an average self-employed income of £33,167, followed by Other Professional, Scientific and Technical activities at £32,128. Arts, Entertainment and Recreation completes the top five at £23,478 — slightly below the national average.
At the lower end of the earnings scale, Transportation and Storage businesses report average annual income of £12,521, Education £12,121, and Administrative and Support Service activities £11,492.
The analysis also examined where new businesses are being created across the UK. Over the past six years, London recorded the largest concentration of business formations, with 480,540 new enterprises launched. The South East followed with 277,750, and the North West with 214,355.
Northern Ireland, the North East, and Wales recorded the lowest number of new businesses formed during the same period.
However, regional survival rates tell a different story. The South West has the strongest five-year business survival rate at 43.5%, followed by Northern Ireland at 42.8%. The East of England ranks third with 40.4%, narrowly ahead of the South East at 40.2%, and Yorkshire and the Humber at 40.1%.
Across the UK, the average five-year survival rate stands at 38.4%.
For many founders, the decision to start a business reflects broader changes in the nature of work. Lawrie Jones, founder of several small businesses including Fly Above Fear, says shifting attitudes toward traditional employment are driving entrepreneurial growth.
“I think people recognise how precarious the world of work is and that a great job at a huge company isn’t a guarantee of lifelong success and riches. Instead, you can have more fun, make more money, and have a better lifestyle while working for yourself, and who wouldn’t want that?
“It’s also cheaper and easier for people now to develop professional businesses from their kitchen table, lounge or bedroom and the barriers to starting a business are being broken down by technology, and that’s great.”
Laura Bartlett, a four-time business founder, attributes her long-term focus on entrepreneurship to a desire for autonomy.
“I’ve built businesses for 16 years because autonomy has always been my non-negotiable goal. Building your own company allows you to think critically and position yourself where the world is heading, rather than where it’s been.
“For me, true security comes from having full control over my future and not leaving my trajectory up to fate. When a business is structurally sound and aligned with a clear vision, survival isn’t the goal and sustainable growth is inevitable.”
Chris Trotman, underwriting manager at Protectivity, says early-stage founders should pay close attention to operational risk as well as growth opportunities.
“Many business owners get swept away in the excitement of starting a new business and all the fun aspects such as developing your idea, building your ideal customer base and scaling quickly but longevity is built in how well risks and finances are managed along the way.
“Making sure you have the right protections in place is essential, with suitable business and public liability insurance being a key component of financially protecting your new venture. It’s not about being pessimistic, it’s about giving yourself the stability to keep moving forward if unforeseen challenges arise.”
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