How have UK businesses changed over the past 100 years?

At first glance, UK businesses have changed a lot since 1926. But to understand the nature and extent of that change requires us to think about issues such as business size, sector, focus and context. This article, which forms part of a series to mark the centenary of the Economic History Society, looks at how UK businesses have been transformed over the past 100 years. 

The UK economy in the 1920s was one that had emerged from the First World War scathed but with a degree of optimism. New industries were appearing, including chemicals, electrical engineering and transport manufacturing (airplanes, cars and motorbikes). 

During this period, British businesses also still benefitted from the fruits of Empire and investment in the renewal of industry.

But the 1920s was not a decade without difficulty. In 1926, over two million workers went on strike. The General Strike was called by the General Council of the Trade Unions Congress (TUC) to protest the working conditions and wages of miners (Jeremy, 1998). 

Miners are now a very rare sight in the UK, and while the General Council of the TUC still exists today, the notion that it could convince millions to go on strike for any reason – let alone in support of miners – is fanciful. 

So, what has changed over the past century? In business terms, almost everything but not quite. 

The 20^th century saw the fall of the British Empire, the discovery of North Sea oil and gas, deindustrialisation and the rise of the service and knowledge economy. Previously dominant industries went into decline with new ones emerging. 

In the 1920s, the UK was still a global leader in many industries, although some have argued that it was already in relative decline compared with Germany and the United States (Crafts, 1998). Nevertheless, over the previous century, it had realised gains from the Industrial Revolution and used its global reach through Empire. 

But over the following 50 years, the Second World War and retreat from Empire brought a reconfiguration of British business that was partly the outcome of the invisible hand of market forces and partly a result of government policy in the latter part of the 20^th century. 

In particular, growing globalisation, entry to and exit from the European Union (EU) and privatisation significantly changed British business.

Size and sector

The difference between the top ten UK companies in 1919 compared with 2026 is pronounced, both in terms of total market capitalisation and sectoral focus (see Table 1). 

In 1919, the largest firm by market capitalisation was J&P Coats, a textiles company based in Paisley with operations around the world (Hannah, 1983). Its market capitalisation at the time was £2.9 billion (converted to today’s prices). This compares with the bank HSBC Holdings plc, the largest UK company in 2026 with a market capitalisation of £266 billion (London Stock Exchange, 2026). 

The change in sectoral composition of the top ten British businesses is also notable. In the early 20^th century, the largest British businesses were dominated by manufacturing and heavy industry. Indeed, the top ten companies in 1919 were all manufacturers in a broad sense, covering clothing, food, tobacco, metal/vehicles and chemicals. 

Jump forward to the current day and the top ten is dominated by banking, pharmaceuticals and oil and gas. 

Table 1: Top ten UK firms by market capitalisation, 1919 versus 2026

Source: Hannah, 1983: Table A.5 *converted to current prices (PPP) using www.measuringworth.com & London Stock Exchange, 2026

Strikingly though, there are three companies in the current top ten that have roots in companies in 1919’s top ten.

First, Lever Bros became Unilever in 1930 after a merger with the Dutch company Margarine Unie. Second, Roll-Royce Holdings purchased Vickers for its marine business in 1999, selling the rest of the company (the defence-focused part) to Alvis plc. Third, Imperial Tobacco was the largest UK tobacco firm in 1919, but has been replaced by British American Tobacco in the top ten in 2026: the latter was formed in 1902 as a joint venture between Imperial Tobacco and the American Tobacco Company. 

These connections demonstrate the remarkable longevity of some firms through their ability to adapt to changing contexts, technologies and markets. For example, Unilever is no longer just a food manufacturer but has branched out into fast-moving consumer goods more generally.

Similarly, while Rolls-Royce has remained focused on engineering, it now covers a wider range of sectors, including energy, aerospace and marine. British American Tobacco has also diversified its business model, incorporating significant retail and financial services provisions in the latter half of the 20^th century. 

Context

British business in the early part of the 20^th century looked very different from today. As touched on above, the Empire was still alive and kicking, manufacturing and heavy industry were dominant, and jobs for life were commonplace a century ago. 

None of these are in much supply today. Modern British businesses are part of an open, globalised and knowledge-based economy with growing numbers of gig workers. But how did we get here?

By 1926, a number of highly successful British entrepreneurs had taken advantage of Empire to create international businesses that spanned continents. For example, the Dewar Brothers created a global Scotch whisky company through imperial connections (MacKenzie et al, 2024), Thomas Lipton went from a small grocer’s shop in Glasgow to grow a multinational business empire (Mackay, 1998). And John Dunlop developed pneumatic tyres using Indian rubber to service the growing automotive sectors in the UK before diversifying into other areas (Best and Williams, 2004). 

Successful British businesses in the 1920s weren’t all focused on Empire, but Empire certainly touched almost every business in the UK at the time.

But in the period immediately following the Second World War, UK companies found themselves in an increasingly globalised marketplace with little access to what was previously known as Imperial Preference – where they could leverage Empire connections for preferential agreements and treatment from the UK government (Perchard, 2013). 

The ‘gentlemanly capitalism’ that characterised much of the development of British business found itself wanting – the clubby boardroom deals between old school friends were no longer sufficient to maintain British competitiveness. This was especially the case given that American and Asian businesses were not just catching up but beginning to forge ahead (Crafts, 1998). 

From the 1990s onwards, UK businesses had replaced the aristocratic amateurs with professionally qualified and educated chief executives, resulting in an improvement in the fortunes of the top publicly quoted firms (Adams et al, 2024).

Commercialisation and technology

In addition, while UK-based science was often regarded as technologically pioneering in the 20^th century, the commercial nous to develop market-ready solutions was lacking. 

An example of this can be found in nuclear power. Britain led in the technology in the middle of the 20^th century, but was eventually overtaken by US companies that cared less about the technology than its commercial application (MacKenzie et al, 2020). This resulted in greater market capture by American business, which, in turn, generated more funds to support technological development. 

Technology adoption is also an important factor in how British businesses have changed over the last century. For example, in 1926, British companies often moved their products by horse and cart locally, by railway regionally and nationally, and by sea internationally. In the present day, railway and sea freight are still used, but they are considered to be very slow in comparison with road and air freight, not to mention electronic communications. 

The new transport industries that emerged in the 1920s meant that goods and services could be moved around the country much more quickly. Nowadays, trading internationally does not mean looking to imperial territories and waiting weeks or months to see if your deal is going to happen, but rather logging on to a computer/smartphone and getting a near immediate answer from potential partners and business counterparts all over the world. Business happens much faster due to developments in infrastructure and communications technology. 

The speed of how business is done also applies to the creation of businesses. In 1926, an entrepreneur might have an idea to sell a particular kind of product. They would then have to coordinate how to get the product through either buying or purchasing it, figure out how to sell it and to what markets, and then consider how to organise the business to give the best chance of success, all of which could take significant time. 

While these principles still largely hold true today, the speed at which they can be executed is markedly different due to technology. The advent of generative artificial intelligence has also shortened the timeframe for creating and operating a business (Chalmers et al, 2021). With the correct approach, an entrepreneur can start a business within a matter of hours/days, whereas in 1926 and even until just a few years ago, this could be an elongated process.

The role of government policy

We cannot have an analysis of the experience of British businesses in the 20^th century without saying something about the role of government. 

British businesses have been the subject of much criticism by academics for poor performance and the loss of their globally leading positions in various sectors. Much of this is fair, but context is critical to understanding why – and the role of government is central to this. 

In the second half of the 20^th century, the UK government veered from taking an active role in the economy through investing in the development of new technologies, joining the EU, shutting down what it considered to be ‘lame duck’ industries, and privatisation (Roy et al, 2026), before taking the UK out of the EU through Brexit (Lines et al, 2026). 

Successive British governments have played an important role in shaping the context in which UK businesses operate at home and abroad. 

Conclusion

When the role of government is combined with the rapid technological advances and increasing globalisation that we have seen through the last century, we can begin to understand not just how, but also why British businesses have changed so much since 1926. 

Despite these changes, it is remarkable that three of the top ten businesses in the UK by market capitalisation today appear in the same list – and in a similar form – from 100 years ago. Each company’s roots are still visible in their current iteration, but as part of a wider configuration of business activities.

It is instructive to understand that amid all the upheaval and change that technology and unsettling contexts can bring, history shows us that some businesses do not just survive but thrive. 

Where can I find out more?

• Artificial intelligence and entrepreneurship: Implications for venture creation in the fourth Industrial Revolution: Article in Entrepreneurship Theory and Practice.
• The Rise of the Corporate Economy: Book by Leslie Hannah, first published in 1976.
• A Business History of Britain, 1900-1990s: Book by David Jeremy.
• British CEOs in the twentieth century: Aristocratic amateurs to fat cats? Article in the Business History Review.

Who are experts on this question?

• Dominic Chalmers, University of Glasgow
• Leslie Hannah, London School of Economics
• Niall MacKenzie, Strathclyde Business School

Author: Niall MacKenzie, Strathclyde Business School 

This article is part of a series exploring economic and social changes since 1926, to mark the centenary of the Economic History Society.

Photo: IR_Stone for iStock