New Data Shows Entrepreneurship Continues to Drive Growth, Innovation and Employment Across Both Economies

While economic discussions often focus on governments, multinational corporations and financial markets, the real engine of economic growth frequently comes from a different source: small and medium-sized enterprises (SMEs).

Across both Nigeria and the United Kingdom, SMEs account for the overwhelming majority of businesses, create millions of jobs and play a critical role in driving innovation and economic resilience.

Recent data from government agencies, economic researchers and business registries suggests that despite operating in very different economic environments, entrepreneurs in both countries are facing similar opportunities and challenges.

Nigeria’s Economy Is Built on SMEs

Small businesses remain the foundation of Nigeria’s economy.

According to data from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Nigeria has approximately 40 million SMEs. These businesses contribute around 50% of national GDP and account for approximately 80% of employment across the country.

Nigeria’s Minister of Industry, Trade and Investment recently stated that MSMEs account for approximately 96% of all businesses operating in the country and employ more than 84% of the workforce.

The figures demonstrate the extraordinary importance of entrepreneurship within Africa’s largest economy.

At the same time, Nigeria’s services sector continues to expand, contributing approximately 55.9% of GDP and helping drive national economic growth of 3.87% during 2025.

The UK’s SME Economy Tells a Similar Story

Although the UK economy differs significantly from Nigeria’s, the importance of SMEs is remarkably similar.

According to UK Government Business Population Estimates, there were approximately 5.7 million private-sector businesses operating in the United Kingdom during 2025. SMEs accounted for 99.85% of all businesses, employed approximately 16.9 million people and generated around £2.8 trillion in annual turnover.

Meanwhile, Companies House reported that the UK corporate register contained approximately 5.43 million companies as of March 2025. During the 2024–25 financial year alone, 801,871 new companies were incorporated, while approximately 14.7 million filings were processed. The public register was accessed more than 16.3 billion times.

These figures reinforce the continuing strength of entrepreneurship within one of the world’s most developed business environments.

Entrepreneurship Is Becoming More Global

One of the most important trends affecting SMEs today is internationalisation.

Historically, many businesses focused exclusively on domestic markets before considering overseas expansion.

Technology has changed that.

Cloud computing, artificial intelligence, e-commerce platforms, digital payment systems and remote collaboration tools now allow businesses to serve international customers with far less infrastructure than previous generations required.

Entrepreneurs in Lagos, Abuja and Port Harcourt can increasingly reach customers in London, Manchester and Birmingham, while UK businesses can access customers throughout Africa, Asia and the Middle East.

The barriers to cross-border business have never been lower.

Business Formation Remains a Leading Economic Indicator

Recent academic research suggests that business creation itself may be one of the strongest indicators of future economic performance.

A 2026 study using real-time Companies House data found that increases in company formation contain forward-looking information about future employment growth and economic output. Researchers concluded that positive shocks in firm creation generate persistent increases in economic activity.

This is an important finding.

It suggests entrepreneurship is not merely a result of economic growth; it actively helps create it.

Every new business has the potential to generate employment, investment, innovation and productivity improvements.

Technology Is Changing the Economics of Starting a Business

Technology continues to reduce barriers to entrepreneurship.

In the UK, recent industry analysis reported record levels of technology company formation, with more than 56,000 new tech businesses incorporated during 2025 and significant growth across nearly every region.

Artificial intelligence is accelerating this trend globally.

Tasks that previously required dedicated departments can increasingly be automated through software and AI tools, enabling entrepreneurs to launch businesses with lower costs and greater efficiency.

For SMEs, this creates opportunities that would have been difficult to imagine a decade ago.

Trust Is Becoming a Competitive Advantage

As businesses become increasingly digital and international, trust becomes increasingly important.

Customers, suppliers, investors and financial institutions expect businesses to demonstrate transparency, credibility and professionalism.

This trend is reflected in regulatory reforms around the world.

In the UK, Companies House has strengthened its role through reforms introduced under the Economic Crime and Corporate Transparency Act, increasing focus on identity verification and corporate transparency.

For SMEs seeking long-term growth, governance and credibility are increasingly becoming competitive advantages rather than administrative obligations.

Expert Perspective

According to Robert Engeham of Your Company Formations, a recognised authority on entrepreneurship, SME growth and international business development:

“One of the strongest similarities between Nigeria and the United Kingdom is the importance of small businesses. SMEs create jobs, drive innovation and provide resilience during periods of economic change.”

Engeham believes technology is creating new opportunities for entrepreneurs in both markets.

“Today’s entrepreneurs can reach customers, suppliers and partners across multiple countries far earlier than previous generations. The businesses that succeed will be those that combine innovation with trust, strong operations and a willingness to think internationally.”

Looking Ahead

The latest data from both Nigeria and the United Kingdom points towards a clear conclusion.

Entrepreneurship remains one of the most important drivers of economic growth, employment and innovation. SMEs continue to dominate business activity, while technology is making it easier for founders to reach customers beyond their domestic markets.

For policymakers, investors and entrepreneurs alike, the message is increasingly clear:

The future of economic growth will not be determined solely by large corporations.

It will also be shaped by the millions of small businesses that continue to create jobs, develop new ideas and build opportunities within their communities and beyond.

About the Author

Robert Engeham is Managing Director of Your Company Formations, a recognised authority on entrepreneurship, SME growth and international business development. Through Your Company Formations, he supports entrepreneurs, startups and international founders with company registration, compliance services and long-term business growth support.