Best business start-up locations revealed
New research from the mobile-first business banking provider, Tide, has identified which parts of the UK have the highest rates of entrepreneurship.
According to the British Entrepreneurial Index (BEI), less than half of all new businesses set up in 2014 were still trading in 2019, with only 43.92% making it through the period.
The BEI uses data from across the UK to establish which areas of the country are currently booming with new businesses, what chances start-ups have of succeeding, and which sectors have seen the biggest start-up growth over the past half-decade.
Northern Ireland, the South East and the South West regions had the best five-year business survival rates in the UK, boasting three, two and five of the top 10 local authorities in the index respectively.
Areas with the lowest survival rates included Lambeth in London (20.11%), Bolsover in the East Midlands (27.78%) and Burnley in the North West (33.33%).
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The top three local authorities for start-up growth between 2018 and 2019 were all in the West Midlands.
With a population of just under 30,000, Bromsgrove saw 171.3% start-up growth through the period, while Wyre Forest and Redditch saw 142% and 131.6% growth respectively.
Additionally, the UK city region with the highest percentage of self-employed workers was the Greater London Authority (18%), where a staggering 864,000 people work for themselves.
Other notable mentions were the Swansea Bay City Region (16.1% - 50,000), the North of Tyne Combined Authority (14.1% - 54,000) and the Greater Manchester Combined Authority (13.8% - 183,000).
Self-employment is the backbone of entrepreneurialism in the UK, with many of the country’s 4.35 million self-employed workers operating as owner-managers of businesses and limited company directors.
The UK sector experiencing the fastest growth in new start-ups between 2014 and 2019 was postal and courier services, which recorded a 263.5% increase.
This figure was a full 100% higher than the next nearest sector, which was veterinary services on 87.8%.
Other manufacturing, which groups together smaller niche manufacturers, came in third on 82.9%.
The top three most attractive towns and cities to launch a new business outside of London were Bournemouth, Stevenage and Watford.
- Only 43.92% of UK businesses that started up in 2014 were still trading in 2019
- The British Entrepreneurial Index is produced by business banking fintech company, Tide
- For more information about how to make your new business a success, head over the UMi platform: https://www.weareumi.co.uk/webapp/.