10 Best Businesses to Start During UK Recession [Explained]

Some businesses power through downturns, quietly picking up steam, while others flounder. The trick is to spot services people can't go without, even when budgets are tight. Food, health, repairs, and anything that saves money tend to do very well.

In this guide, we break down the best recession-resilient businesses in the UK.

For each one, we’ll explain:

• What the job involves
• Who it suits best
• Why it remains profitable
• What you need to get started

If you’re serious about launching something stable and in-demand, this list of the best businesses to start in a recession is for you.

1. Healthcare services

What’s the job?

Healthcare is broad, but the most recession-resistant parts include home care for the elderly, health product retail, and private health consultations. These are essential services, simply because people won’t delay care because of a downturn.

This can include:

• Starting a home care agency
• Selling mobility aids and health products online
• Running a private physiotherapy or wellness clinic

Who’s it for?

• Ex-NHS workers or carers
• Empathetic individuals
• Entrepreneurs who want stable cashflow

Why this business stay profitable in a recession

Demand for health services and home care rises during economic slumps. The UK's ageing population adds to that.

So, even people who reduce spending elsewhere will pay for care, mobility aids, supplements, and in-home help.

Healthcare also attracts long-term contracts and is supported by public and private funding.

🔸 Example: A private care agency offering non-medical assistance (shopping, bathing, companionship).

What do you need?

• DBS checks
• CQC registration if offering regulated care
• Training in safeguarding and first aid
• Website, insurance, and booking process
• Potential partnerships with local councils or GPs

2. Grocery and low-cost food retail

What’s the job?

Running a small grocery, meal prep business, corner shop, or food truck serving affordable meals. Essentials, not luxuries. People trade down to cheaper food options during tough times, creating room for value-driven food businesses.

This can also include:

• Pop-up market stalls
• Frozen meal boxes
• Low-cost delivery of staples to vulnerable groups

Who’s it for?

• Aspiring food entrepreneurs
• People who want a physical or mobile shop
• Community-minded business owners

Why it stays profitable during a recession

Food demand never drops. In recessions, people switch from dining out to eating at home. Budget meals, meal kits, and snacks become staples.

So, if you can deliver value, people will keep coming back.

Also, lower-income households in particular will prioritise price, bulk-buying, and convenience.

🔸 Example: A meal prep company offering affordable weekly bundles for local families.

What do you need?

• Food hygiene certificates
• Suppliers or wholesalers
• Equipment for prep or storage
• Online presence or delivery partners
• Partnerships with food banks or community groups (optional)

3. Auto repair and mobile mechanics

What’s the job?

Fixing and servicing vehicles, either from a garage or as a mobile mechanic. Includes MOT prep, diagnostics, and emergency callouts. You may also offer tyre fitting, battery replacement, or basic fleet servicing for local businesses.

Who’s it for?

• Trained mechanics
• Automotive enthusiasts
• People looking for consistent, location-based work

Why it stays in demand in a recession

Car sales often decline during economic downturns or periods of uncertainty, as seen in early 2025 when new car registrations fell compared to the previous year.

However, overall car sales are expected to grow modestly in 2025 due to improving consumer finance conditions.

Meanwhile, repairs and servicing typically increase as people hold onto older vehicles and seek to extend their lifespan.

Regular maintenance such as servicing, brake jobs, and electrical repairs remains essential. Additionally, mobile vehicle repair services have grown by around 20% year-on-year, driven by their convenience and lower costs.

What do you need?

• Certification (IMI, ATA, etc.)
• Vehicle and equipment
• Insurance (motor trade)
• Booking system and local advertising
• Customer review system or profile on platforms like FixMyCar

4. Home Repairs and Trades (Plumbing, electrical, etc.)

What’s the job?

Responding to urgent home issues: leaks, faulty electrics, broken heating, or other services, people can’t delay. You can also focus on compliance checks (EICR, gas safety) or simple upgrades like insulation and thermostats to improve energy efficiency.

Who’s it for?

• Qualified tradespeople
• Skilled handypeople
• Newcomers who’ve retrained in trades

Why it stays profitable even in a recession

Even during a recession, broken boilers need fixing. Leaks must be stopped. Instead of renovating, people patch up homes.

Demand doesn’t fall; actually, it often rises due to neglected maintenance.

In fact, many landlords and letting agents seek reliable contractors, regardless of the economic situation.

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🔸 Example: A solo plumber offering emergency repairs within your postcode.

What do you need?

• Gas Safe/NICEIC registration
• Tools, van, and insurance
• Listings on Checkatrade or Rated People
• Basic invoicing and CRM system
• Optional: Partnerships with estate agents

5. Financial services and debt advice

What’s the job?

Helping individuals or businesses navigate financial pressure. This recession-proof business includes budgeting help, tax filing, small business consulting, and debt management.

Other options:

• Self-assessment support for sole traders
• Payroll management for small firms
• Financial literacy courses for the public

Who’s it for?

• Accountants or bookkeepers
• People confident with numbers
• Former financial advisers

Why it stay in demand during a recession

Money gets tighter in recessions. People panic about debt, tax, and compliance.

As a result, businesses downsize and outsource their finance tasks. Thus, financial support becomes a necessity.

Government relief schemes also create demand for someone to interpret and apply for them.

What do you need?

• Qualifications (AAT, ACCA, or experience)
• Client data protection (GDPR-compliant tools)
• Accounting software (Xero, QuickBooks)
• Website with clear packages
• Templates for budgeting, cashflow, and forecasting

💡 For more details about how to start a profitable business during a recession, read our guide – How to Start a Bookkeeping Business in the UK [2025 Guide].

6. IT support and digital services

What’s the job?

Providing tech support, digital consulting, cybersecurity, or cloud management for individuals and small businesses. Many also run website optimisation, basic SEO, or help businesses set up digital tools.

Who’s it for?

• IT professionals and support staff
• Freelancers with digital or design skills
• Developers or ex-tech employees

Why it stays profitable

Tech is no longer optional. Businesses rely on digital infrastructure more than ever, especially in remote work. When budgets shrink, they ditch in-house roles but outsource key functions like IT and websites.

🔸Example: A part-time digital consultant helping small local firms with backups, antivirus protection, and remote work tools.

What do you need?

• Relevant experience or certification (CompTIA, etc.)
• Remote work tools (Zoom, TeamViewer, Slack)
• Service page outlining packages
• Optional: specialisation in one niche (e.g., dental clinics or estate agents)

7. Discount retail and second-hand shops

What’s the job?

Selling clearance, surplus, and second-hand goods either in a physical shop or online. Popular items include clothing, homeware, furniture, and refurbished electronics.

Who’s it for?

• People who enjoy bargain-hunting or reselling
• Those experienced in online marketplaces
• Community-focused entrepreneurs

Why it stays profitable

More people shop second-hand or hunt for deals during recessions. Pound shops, charity shops, and second-hand apps like Vinted are booming. You can also offer part-exchange or bundle deals for added value.

🔸Example: A refurbished home tech store selling tested appliances and old-stock gadgets with warranties.

What do you need?

• Wholesale, auction, or donation sourcing
• Listing platform (Depop, Shopify, eBay)
• Returns process and delivery setup
• Space for stock and testing

8. Tutoring and online education

What’s the job?

Offering tutoring for school-age children or training adults in professional skills like coding, Excel, or languages. You can teach through Zoom or online learning platforms.

Who’s it for?

• Former teachers
• Graduates with in-demand subject knowledge
• Trainers or coaches with niche skills

Why it stays profitable in a recession

Education is never a wasted investment. Parents double down on tutoring during exam years. Adults turn to training to shift careers or boost employability.

Additionally, as a digital-first tutoring business, you can also serve students across the UK..

🔸Example: A subject-specific tutoring business for GCSE Science or 11+ prep, including resource downloads.

What do you need?

• Subject expertise and DBS check
• Booking calendar and online classroom tools
• Packages for parents to choose from
• Reviews, testimonials, and consistent lesson plans

9. Childcare and after-school services

What’s the job?

Providing affordable, dependable care for working families. Includes breakfast clubs, school pickups, home-based childcare, and half-term holiday schemes.

Who’s it for?

• Early years workers
• Parents with childcare experience
• People looking for part-time income with flexibility

Why it stays profitable

Childcare doesn’t pause for recessions. Parents still need to work and sometimes longer hours, and schools can’t always provide cover. So, flexible, reliable childcare is vital and in short supply.

🔸 Example: A childminder offering term-time care and enrichment activities for ages 4–10.

What do you need?

• Early years qualification (or pathway to one)
• Safeguarding and paediatric first aid training
• DBS check and Ofsted registration
• Basic record-keeping and communication with parents

10. Wellness and coaching services

What’s the job?

Another business you can start during a recession is helping people manage stress, improve health, or navigate personal transitions. Includes physical wellness (PT, yoga), mental health (counselling), or coaching (career, life, confidence).

Who’s it for?

• Trained coaches, therapists, or fitness professionals
• Those with lived experience who’ve retrained
• Listeners and problem-solvers

Why it stays profitable

It is known that stress, burnout, and anxiety spike during recessions. Thus, affordable support via Zoom is more accessible than private therapy. Clients are often more willing to invest in wellness when things feel out of control.

🔸 Example: An online life coach working with new mums returning to the workforce after redundancy.

What do you need?

• Accredited training or CPD
• Booking and payment platform
• Social proof or content (testimonials, workshops)
• Optional: group sessions or free tasters to build trust

Bonus: What 5 businesses should you avoid starting in a recession

Not all businesses are built to weather a financial storm. Some rely heavily on discretionary spending, tourism, or one-off big purchases. These are typically the first things households cut back on when money gets tight.

Here are a few types of businesses that tend to struggle during economic downturns in the UK, along with the reasons why.

1. Luxury or high-end retail

Luxury clothing, watches, jewellery, designer shoes, and similar products tend to see a dip in demand when consumer confidence falls. While high-net-worth individuals might still spend, the wider market tightens its grip on non-essential purchases.

🔸 Why it struggles: People focus on food, bills, and necessities. High-end purchases are delayed or skipped entirely, especially if shoppers can find cheaper alternatives or buy second-hand.

2. Event planning and hospitality

Planning weddings, large parties, corporate functions, or hospitality events can become risky during economic downturns. Budgets shrink, venues cancel, and clients postpone indefinitely.

🔸 Why it struggles: Social events often require upfront deposits and carry large fixed costs. When companies and families cut costs, these services are among the first to be dropped or scaled back.

3. Fine dining restaurants

Restaurants with higher price points face a squeeze. As the cost of ingredients, wages, and utilities increases, customer volume often declines. Diners shift to fast-casual or takeaway options, particularly those offering value meals.

🔸 Why it struggles: People still eat out, but they look for affordable choices. Fine dining becomes an occasional treat rather than a regular habit, and overheads are tough to trim without compromising quality.

4. Trend-dependent startups

Products or services that rely on fleeting social media trends, novelty gadgets, or niche hype can have explosive short-term growth. However, in uncertain times, these ideas are less likely to sustain long-term demand.

🔸 Why it struggles: People become more cautious with spending and less likely to experiment with unknown brands or gimmicky products. Interest fades quickly, and marketing costs rise just to stay visible.

5. Travel and tourism businesses

Independent travel consultants, boutique agencies, and local tour operators often struggle during recessions. Domestic travel might hold up, but international holiday planning takes a hit.

🔸 Why it struggles: Families cancel or delay holidays to save money. Even staycations may see reduced bookings as people cut back on non-essentials, and unpredictable travel restrictions or insurance costs add further risk.

🔎 If you're passionate about one of these industries, it doesn't mean you can't start something within it. But you will need to be more creative, keep costs as low as possible, and consider how to adapt your offer to meet essential or high-value needs.

Summary table of the best businesses to start during a recession

Final thoughts

A recession might seem like a strange time to launch a business, but history shows us that some of the most enduring businesses started during downturns.

The key is to focus on value, flexibility, and real-world needs.

If you solve an everyday problem, you’re already in demand, recession or not.

Start lean. Test locally. Build trust. With a sharp offer and a recession-proof idea, your new venture could not only survive but thrive.

Need help registering your business?

Use ANNA to register a company, send invoices, and manage taxes – all in one place.

One less thing to worry about when you’re just starting out.