New analysis released by SmallBusinessPrices.co.uk highlights the best regions in the country for starting up an independent business. The research uses data including survival rate, average weekly spend per person and population, as well as the highest closure and opening rates for shops to calculate the figures.
With the current economic situation due to coronavirus, it’s important to see the positive impact that smaller, independent companies have on the UK high street. Many consumers are turning to those independent businesses that are still trading to see them through the current crisis. They are looking to shop more locally, with cafes providing takeaway and delivery services and local stores often quieter than the bigger supermarkets.
South East the best place to open a business
According to the research, the South East of England is the best region to start an independent business. There is a total of 461,170 businesses in the area, with 64% of those starting up still open after five years. It also has the highest weekly expenditure, with £272 per person on average being spent.
The two areas of the country that have the highest five year survival rate for businesses are Scotland and Wales – who both saw 65% of companies open after this time. In the overall ratings, Scotland was ranked in fourth place and Wales came in at eighth. For average weekly expenditure, Scotland residents spent £225pp and in Wales it was £203pp.
London has the highest number of businesses, with over half a million independent companies, and comes second in the list of best regions to open a business. With 62% of companies making it past their first five years, it has the fourth highest survival rate and a high weekly spend per person of £250.
Types of companies most likely to survive
The research also analyses those sectors of business that are most likely to get beyond their first year. Accommodation and petrol stations come out at the top, with 99% surviving their first year.
In the accommodation industry, 93% of companies made it past their third year and 86% are still open by year five. Petrol stations saw 92% survive to year three (80% in year five), entertainment businesses 87% (78% in year five) and chemist, toiletries and health stores 84% (73% by year five).
The year in which more businesses start to fail is the fifth year. In some areas of the economy the numbers of businesses that stay open can drop by 50%. For example, across fashion stores, only 47% will make it to their fifth year of trading. The sector that sees the lowest number of stores remaining open after year five is the china and goods shops industry, with just 41%.
More information
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