Looking into starting your own business but unsure what or where? Expert Market has investigated the survival rate of businesses, using data from the Office for National Statistics (ONS), in relation to geographical location and business industry. From the most successful sector to the region with the most failures, we bring you the stats for the best and worst places to start your business.
London seems a failsafe choice to start a business with weird and wonderful startups popping up all over the capital, yet the data revealed that London is the least likely place for your business to survive, with an enormous 61.4% failing to withstand their first five years in business.
The average failure rate for businesses across the UK settled at 58.3% suggesting that no matter where you start your business it is more likely to fail than succeed. The South West came in as the most successful region and yet still hosted a 55% failure rate.
If you’re considering opening a business in the Accommodation and Food Services you may want to think again, as a whopping 66% of businesses failed in this sector, despite being the fifth most popular industry choice to start a business.
The Professional, Scientific and Technical industry featured the most startups with 47,645, followed by Construction with 29,245 and Business Administration with 28,595. The least popular industry to start a business was Finance and Insurance with just 3,285, followed by Education, Motor Trades and Health. Interestingly, the only two industries which proved more likely to succeed than fail were Health and Education, proffering success rates of 51.8% and 50.9% respectively.
To conclude, you can prepare for healthier rates of success with a Health or Education business in the South West, but you may have bitten off more than you can chew with a Food and Accommodation startup in London.
Data used from Office for National Statistics: 2009 - 2014