New business start-ups in Bristol have the best chance of surviving beyond the five-year mark, new research has revealed.
Data released by the Office for National Statistics has revealed just four out of ten UK start-ups survive their first five years in business.
However, online corporate price-checker firm BusinessComparison has drilled deeper into that data to produce a city by city breakdown of survival rates – and reveals Bristol has emerged at the top of the pile.
Some 44.4% of Bristol companies launched in 2013 were still operating in 2018, according to the data – placing Bristol ahead of Brighton (44.1%) and Leeds (42.9%) in the UK performance table.
Spokesperson Kerry Fawcett says Bristol start-ups can thrive in a city with an economy ‘built on industries such as creative media, electronics and aerospace’.
She said: “Business start-up survival rates are commonly impacted by the support of the wider business community and opportunities for entrepreneurs to thrive, as well as access to a much-needed talent pool.
“With two world-class universities, including Bristol Business School, alongside a wide range of new business support services, it’s no surprise to the city taking the top spot in our research.”
Plymouth was named as the city with the lowest business survival rate (30.7%) – lagging well behind the next worst performers Portsmouth (35.3%) and Liverpool (35.8%).
|Rank||Town / City||New Startups In 2013||5 Year Survivals||5 Year Survival Rate|
|2||Brighton and Hove||1,960||865||44.13%|
Regionally, the South West proved to be the most successful start-up area, with a 45.6% survival rate across the period assessed.
The East and South East completed the top three in a regional breakdown, while the north of England and Scotland struggled in comparison – and London finished rock bottom of the regional breakdown with a business survival rate of just 39.3%.
BusinessComparison’s research revealed some of the industries which saw the highest survival rate over the five-year period included drinks manufacturers (53%), residential care (52%) and the creative arts and entertainment industry (52%).
At the other end of the scale, some of those industries which have struggled include insurance (13%) and clothes manufacturers (30%).
Overall, according to the ONS, around 381,000 companies are launched in the UK each year, with around 336,000 going out of business.