National statistics

DCMS economic estimates: Business demographics, 2023 - main report

Published 16 November 2023

1. Background

• Release date: 16 November 2023
• Next release: Winter 2024
• Geographic coverage: United Kingdom and ITL1 regions
• Time coverage: March 2019 to March 2023
• Responsible analyst: Eri Hutchinson

This release provides estimates of the number, employment, 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 2023 the total number of businesses in the included DCMS sectors was 584,920. This represented 21.5% of the 2,726,830 businesses registered in the UK.

Figure 1: Estimated number of registered businesses in the included DCMS sectors and the UK overall, March 2023.

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%.

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 2023, businesses in the included DCMS sectors followed a similar size distribution to the UK registered businesses in general. The vast majority (87.3%) of businesses in the included DCMS sectors fell into the micro (0-9) employee band, slightly less than UK registered businesses in general (89.1%).

Figure 2: Percentage of businesses by employment band for the included DCMS sectors and all UK registered businesses, March 2023

Size of business by annual turnover in the included DCMS sectors

In March 2023, businesses in the included DCMS sectors were more likely to be in a lower turnover band than UK businesses in general. 75.9% of the included DCMS sector businesses have a turnover of less than £250,000, compared to 68.1% of UK businesses in general. 

Figure 3: Distribution of businesses in the included DCMS sectors and overall UK registered businesses by annual turnover (£000s), March 2023

Regional distribution of business sites in the included DCMS sectors

In March 2023, there were 670,170 business sites in the included DCMS Sectors, representing 21.1% of the 3,175,710 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 creative industries).

In common with UK business in general, the included DCMS sectors tended to have a high proportion of business sites in London and South East England relative to other regions (as defined by the ITL1 geographic classification of administrative areas). Of business sites in the included DCMS sectors, 159,525 (23.8%) were in London. This is a higher proportion than for UK business sites overall, of which 584,415 (18.4%) were in London.

Figure 4: Regional distribution of business sites in DCMS sectors (excl civil society), March 2023

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

The number of businesses in the included DCMS sectors had decreased by 4,925 (0.8%) from March 2019 to March 2023, in contrast to UK businesses in general which increased in number by 8,395 (0.3%) over the same period. This meant businesses in the included DCMS sectors went from representing 21.7% of all registered UK businesses in March 2019 to 21.5% in March 2023. The number of businesses in the included DCMS sectors decreased by 3,245 (0.6%) from March 2022 to March 2023, mostly accounted for by a decrease in the number of tourism industries and creative industries businesses. This compares to a decrease of 40,870 (1.5%) in UK businesses overall over the same period. 

Since 2019 changes in the number of included DCMS sector businesses have been driven by changes in those of the largest sectors - tourism industries and creative industries. The total number of included DCMS sector businesses rose from March 2019 to March 2020, before steadily falling to March 2023. This is in contrast to UK businesses overall which increased steadily from March 2019 to March 2022, before decreasing between March 2022 and March 2023.

Some DCMS sectors displayed a similar trend, while others had a sustained increase or decrease in business numbers over the period.

Figure 5: Index of total number of businesses in the individual DCMS sectors, March 2019 - March 2023, March 2019 = 100

Changes over time in business size in the included DCMS sectors

The relative size of businesses in the included DCMS sectors when measured by employee band has remained stable, with 99.7% having under 250 employees in each year from March 2019 to March 2023. This is similar to the proportion of small businesses in the UK overall, with 99.6% of registered businesses having under 250 employees in each year over the same period.

Changes over time in regional distribution of business sites

In March 2019 the region with the largest number of included DCMS sectors business sites was London, representing 24.6% of the total. The fewest business sites were located in Northern Ireland, at 1.9% of the total.

By March 2023, the gap between the proportion of business sites in these regions had slightly narrowed. 23.8% of business sites for the included DCMS sectors were in London, with 2.0% in Northern Ireland. The distribution of business sites in the included DCMS sectors was more equally distributed across the UK in March 2023 compared to March 2019.

In contrast, UK businesses in general had 18.4% of business sites in London and 2.8% in Northern Ireland in March 2019. These proportions were similar in March 2023, with 18.4% in London and 2.9% in Northern Ireland. 

2.2 Creative industries

Number of businesses in the creative industries

In March 2023 there were 265,420 businesses in the creative industries, making up 45.4% of all businesses in the included DCMS sectors and 9.7% of the 2,726,830 registered businesses in the UK.
After a small increase between 2019 and 2020, the number of businesses in the creative industries has consistently decreased. In March 2023, the creative industries had 6,620 (2.4%) fewer businesses than in March 2022 and 32,090 (10.8%) fewer businesses than in March 2019.

Size of businesses by number of employees in the creative industries

In March 2023, businesses in the creative industries followed a similar size distribution to the UK registered businesses in general. The vast majority (93.4%) of businesses in the creative industries fell into the micro (0-9) employee band, slightly higher than 89.1% of UK registered businesses in general.

The relative size of businesses in the creative industries when measured by employee band has remained stable, with 99.8% having under 250 employees in each year from March 2019 to March 2023. This is slightly higher than the proportion of small businesses in the UK overall, with 99.6% of registered businesses having under 250 employees in each year over the same period.

Size of businesses by annual turnover in the creative industries

In March 2023, 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. 80.4% of creative industries businesses have a turnover of less than £250,000, compared to 68.1% of UK businesses in general and 75.9% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the creative industries

In March 2023, there were 274,570 business sites in the creative industries, representing 41% of the 670,170 DCMS sector business sites and 8.6% of the 3,175,710 registered business sites in the UK. 92,750 (33.8%) of these business sites were in London. This is a higher proportion than for UK business sites overall, of which 584,415 (18.4%) were in London.

2.3 Cultural sector

Number of businesses in the cultural sector

In March 2023 there were 79,755 businesses in the cultural sector, making up 13.6% of all businesses in the included DCMS sectors and 2.9% of the 2,726,830 registered businesses in the UK. The number of businesses in the cultural sector gradually increased from March 2019 to March 2023, increasing by 6,680 (9.1%) between March 2019 and March 2023 and by 2,465 (3.2%) between March 2022 and businesses in March 2023. 

Size of businesses by number of employees in the cultural sector

In March 2023, businesses in the cultural sector followed a similar size distribution to the UK registered businesses in general. The vast majority (95.4%) of businesses in the cultural sector fell into the micro (0-9) employee band, higher than  89.1% of UK registered businesses in general.

The relative size of businesses in the cultural sector when measured by employee band has remained stable, with 99.8% having under 250 employees in each year from March 2019 to March 2023. This is higher than the proportion of small businesses in the UK overall, with 99.6% of registered businesses having under 250 employees in each year over the same period.

Size of businesses by annual turnover in the cultural sector

In March 2023, businesses in the cultural sector 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. 80.2% of cultural sector businesses have a turnover of less than £250,000, compared to 68.1% of UK businesses in general and 75.9% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the cultural sector

In March 2023, there were 85,560 business sites in the cultural sector , representing 12.8% of the 670,170 DCMS sector business sites and 2.7% of the 3,175,710 registered business sites in the UK. 34,560 (40.4%) of these business sites were in London. This is a higher proportion than for UK business sites overall, of which 584,415 (18.4%) were in London.

2.3 Gambling

Number of businesses in the gambling sector

In March 2023 there were 940 businesses in the Gambling, making up 0.2% of all businesses in the included DCMS sectors and 0.03% of the 2,726,830 registered businesses in the UK. The number of businesses in the gambling sector decreased steadily between March 2019 and March 2023, decreasing by 125 (11.7%) between 2019 and 2023 and by 20 (2.1%) between March 2022 and March 2023. 

Size of businesses by number of employees in the gambling sector

In March 2023, businesses in the gambling sector followed a similar size distribution to the UK registered businesses in general. The majority (64.9%) of businesses in the gambling sector fell into the micro (0-9) employee band, less than 89.1% of UK registered businesses.

The relative size of businesses in the gambling when measured by employee band has remained relatively stable, with between 96.4% and 96.9% having under 250 employees in each year from March 2019 to March 2023. This is lower than the proportion of small businesses in the UK overall, with 99.6% of registered businesses having under 250 employees in each year over the same period.

Size of businesses by annual turnover in the gambling sector

In March 2023, businesses in the gambling sector were less 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. 47.3.% of gambling businesses have a turnover of less than £250,000, compared to 68.1% of UK businesses in general and 75.9% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the gambling sector

In March 2023, there were 9,010 business sites in the gambling sector, representing 1.3% of the 670,170 DCMS sector business sites and 0.3% of the 3,175,710 registered business sites in the UK. 1,605 (17.8%) of these business sites were in London. This is a lower proportion than for UK business sites overall, of which  584,415 (18.4%) were in London.

2.3 Sport

Number of businesses in the sport sector

In March 2023 there were 43,415  businesses in the sport sector, making up 7.4% of all businesses in the included DCMS sectors and 1.6% of the 2,726,830 registered businesses in the UK. The sports sector saw a gradual increase from March 2019 to March 2023, increasing by 4,235 (10.8%) between March 2019 and March 2013 and by 495 (1.2%) between March 2022 and March 2023.

Size of businesses by number of employees in the sport sector

In March 2023, businesses in the sport sector followed a similar size distribution to the UK registered businesses in general. The vast majority (84.6%) of businesses in the sport sector fell into the micro (0-9) employee band, lower than 89.1% of UK registered businesses in general.

The relative size of businesses in the sport sector when measured by employee band has remained stable, with around 99.5% having under 250 employees in each year from March 2019 to March 2023. This is higher than the proportion of small businesses in the UK overall, with 99.6% of registered businesses having under 250 employees in each year over the same period.

Size of businesses by annual turnover in the sport sector

In March 2023, businesses in the sport sector were less likely to be in a lower turnover band than UK businesses in general but more likely to be in a lower turnover band than the included DCMS sectors overall. 73.3% of sports sector businesses have a turnover of less than £250,000, compared to 68.1% of UK businesses in general and 75.9% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the sport sector

In March 2023, there were 51,051 business sites in the sport sector, representing 7.6% of the 670,170 DCMS sector business sites and 1.6% of the 3,175,710 registered business sites in the UK. 5,850 (11.5%) of these business sites were in London. This is a lower proportion than for UK business sites overall, of which 584,415 (18.4%) were in London.

2.3 Tourism industries

Number of businesses in the tourism industries

In March 2023 there were 311,425 businesses in the tourism industries, making up 53.2% of all businesses in the included DCMS sectors and 11.4% of the 2,726,830 registered businesses in the UK. The number of businesses increased between March 2019 and March 2022 before decreasing in 2023. In March 2023, the number of businesses in the tourism industry had increased by 12,530 (4.2%) compared to March 2019 but had decreased by 9,965 (3.1%) compared to March 2022.

Size of businesses by number of employees in the tourism industries

In March 2023, businesses in the tourism industries followed a similar size distribution to the UK registered businesses in general. The vast majority (83.1%) of businesses in the tourism industries fell into the micro (0-9) employee band, a smaller proportion than 89.1% of UK registered businesses in general.

The relative size of businesses in the tourism industries when measured by employee band has remained stable, with between 99.6% to 99.7% having under 250 employees in each year from March 2019 to March 2023. This is a similar proportion of small businesses to the UK economy overall, with 99.6% of registered businesses having under 250 employees in each year over the same period.

Size of businesses by annual turnover in the tourism industries

In March 2023, businesses in the tourism 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. 73.6% of tourism industries businesses have a turnover of less than £250,000, compared to 68.1% of UK businesses in general and 75.9% of businesses in the included DCMS sectors overall.

Regional distribution of business sites in the tourism industries

In March 2023, there were 381,570 business sites in the tourism industries, representing 56.9% of the 670,170 business sites in the included DCMS sectors and 12.0% of the 3,175,710 registered business sites in the UK. 72,250 (18.9%) of these business sites were in London. This is a slightly higher proportion than for UK business sites overall, of which 584,415 (18.4%) were in London.

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 and digital sector business demographics. Estimates in this release are not directly comparable to DCMS sectors and digital 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 and digital 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 Eri Hutchinson. 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.