London Sees Surge in Solo Entrepreneurs Post-Pandemic

Data from Companies House reveals a sharp increase in one-person businesses across London, reflecting a shift in work culture and economic resilience.

3 June 2025 at 6:09 • By Priya Malik, The Angle Watch

Post-pandemic Britain is witnessing a surprising economic phenomenon: the rise of the solo entrepreneur. New figures from Companies House show that the number of one-person businesses registered in London has increased by 28% since 2020.

Many of these new ventures are digital-first: freelance consulting, online tutoring, content creation, and niche e-commerce dominate the field. According to HMRC data, self-employed VAT registrations are highest in boroughs like Hackney, Camden, and Southwark.

For 31-year-old IT consultant Neel Joshi, starting a solo company was both a necessity and an opportunity. 'After my firm downsized, I decided to offer my expertise directly. Within months, I had clients across three countries,' he shared.

The rise is partially attributed to a cultural shift in attitudes toward work. Hybrid models have normalised remote operations, and platforms like Upwork, Etsy, and Shopify have lowered entry barriers to self-employment.

However, challenges remain. Many sole traders face issues with late payments, lack of affordable health cover, and minimal legal protections. 'There’s an urgent need for better regulatory support for this growing workforce,' said independent economist Julia Park.

To meet demand, co-working spaces across London are offering discounted solo packages, and business support groups are launching peer-led accelerators for micro-entrepreneurs.

With the cost of living still high, many are supplementing traditional jobs with part-time ventures. This 'side hustle' economy has blurred lines between employment and enterprise, giving rise to a more fluid and resilient job market.