Overview of the business sector in the UK

The UK's private business sector is incredibly broad, meaning that graduates with the right qualifications have huge scope when choosing a career. Discover what it's like to work in a sector that boasts high starting salaries and early responsibility

What is the business sector?

According to government statistics, there were 5.6 million private sector businesses in the UK at the start of 2023, employing 27.5 million people - compared to 5.83 million working in the public services sector (March 2023).

The private business sector (or corporate sector as it's also known) can be broken down into:

• Small businesses with less than 50 employees - the majority, standing at 5.51 million.
• Medium-sized enterprises with 50 to 249 employees - totalling 36,900.
• Large organisations with 250 or more employees - numbering 8,000.

Small and medium-sized enterprises (SMEs) accounted for 61% (16.7 million) of the business population in the UK at the beginning of 2023, with small businesses accounting for 48% (13.1 million).

As well as employing around three-fifths of the total private sector workforce, SMEs also contributed half of the turnover.

What areas of business can I work in?

Employment opportunities can generally be split into two main areas: business management and consultancy.

You don't need to restrict yourself solely to the business sector, as many organisations require managers and consultants to operate effectively. Because of this, graduates have plenty of job opportunities to choose from.

Business managers usually work in general management jobs or hold specific responsibilities for a particular area of an organisation, such as:

• human resources (HR)
• information technology (IT)
• marketing
• operations management
• strategy planning
• talent management.

Some roles lean towards people management, while others focus on project management - but most managers need skills in both areas.

On the other hand, business management consultants offer advice to organisations to help them solve problems and enhance performance. They either work in large companies or consultancy firms.

Organisations can be general, specialise in strategy or offer advice to a specific industry, such as:

• HR
• IT
• marketing and public relations (PR)
• media.

Work in this area is highly competitive, with firms looking for bright, high achievers. However, you may find it useful to first move into a role where you can build up business knowledge and maturity before heading into consultancy. Read about consulting graduate schemes.

Alternatively, consider other business jobs that offer specialist information, advice and support to companies, such as data mining or market research, or specific roles such as:

• business adviser
• economist
• operational researcher
• risk manager.

For examples of what's on offer, see business, management and consulting jobs.

When researching potential areas of work it's likely that they overlap with the accountancy, banking and finance sector. Professionals from both sectors work together to ensure the best outcome for the client and the lines between the two industries can sometimes become blurred.

Who are the main graduate employers?

Most large companies offer business management jobs to graduates, while there are opportunities to work within the public sector for employers such as

• the Civil Service
• National Health Service (NHS) - Graduate Management Training Scheme (GMTS)
• local government - National Graduate Development Programme (NGDP).

When it comes to working for consultancy companies, there are plenty of opportunities in the financial sector. The 'big four' accountancy firms - Deloitte, EY, KPMG and PwC - are among some of the most well-known organisations offering graduate consultancy roles.

Other notable consultancy organisations include:

• Accenture
• Bain & Company
• Boston Consulting Group
• Capgemini
• FTI Consulting
• Grayce
• Hymans Robertson
• McKinsey & Company
• Oliver Wyman
• PA Consulting Group
• Roland Berger.

Consultants can be found in other sectors too, including:

• energy and utilities
• healthcare
• retail.

However, these roles are often for those with expertise and experience in the specific industry, rather than entry-level graduates.

While large organisations in the sector often advertise impressive graduate packages, it's also worth sending speculative applications to SMEs. Smaller companies have a lot to offer. Read about working for a small business.

What's it like working in the sector?

Graduates entering business management or consultancy jobs can expect:

• roles to be available across the UK, with the majority of work centred in cities such as Bristol, Cardiff, Edinburgh, Manchester, Newcastle, Leeds and London
• tough targets and tight deadlines
• a varied working life that involves a substantial amount of travel, with time spent at client sites and periods away from home
• high starting salaries, typically between £25,000 and £35,000 excluding bonuses - rising quickly to around £50,000
• to work in a high-pressured environment, where quick decision-making and confidence in your abilities is essential
• long working hours with a focus on meeting deadlines and completing projects
• an immediate high level of responsibility and opportunities for rapid career progression
• self-employment or freelance work to be an option within several years.

To discover what to expect from specific roles, browse our business, consulting and management job profiles.

What are the business industry trends?

A NatWest survey revealed how over half of business leaders in the UK admitted that 2023 was one of their most challenging years - mainly due to the energy crisis and the rise in the cost of living. Despite ongoing uncertainty and widespread supply chain issues, two-thirds of business owners remain optimistic for the future and plan to grow their businesses.

In 2023, generative AI (artificial intelligence) took off in a big way, with new large language models (LLMs) such as ChatGPT coming to the fore. As the performance of these models improve, we're likely to see more widespread usage of AI across many business sectors including accounting, banking, HR and law. You'll find that IT consultants with knowledge of AI, data analytics and cloud services will be in high demand.

Many companies have committed to diversity, equity, and inclusion (DEI) practices that tackle issues surrounding diversity in business. The DIAL Global Diversity Review 2023 shows how improvements have been made in this area.

The research, which questioned 87 UK businesses, revealed that ethnic representation in leadership increased from 59% to 81% between 2022 and 2023.

They also found that 66% of firms had appointed someone on their leadership team to act as an executive sponsor for a LGBTQ+ network. This was up from 53% in 2022.

In the midst of difficult economic conditions, the Rose Review 2023 reported more women founding businesses in 2022 than ever before - twice as many as in 2018. More than 150,000 businesses were started by women, with the biggest rise attributed to the 16 to 25 age group, which rose by nearly a quarter.

Read about diversity in the workplace and learn how to start a business.

Find out more

• Discover the 7 skills for a successful management career.
• Consider what you can do with your business management degree.
• Explore business apprenticeships.