Friday, 19 September 2014

Business Survival rates

Interesting data from the ONS, read down the first column.  After 4 years, almost half new businesses have gone.

 Business survivals

The UK five-year survival rate for businesses born in 2007 and still active in 2012 was 44.6%. By region, the highest five-year survival rate was in the South West region at 48.1%, while the lowest was in London at 41.7% which mirrors the churn rate seen in the business birth and death data.  By broad industry, some notably high five-year survival rates include health with a survival rate of 56.1% and education with a survival rate of 54.5%.  Hotels & catering was the lowest with only 37.0% of businesses surviving for five years. There has been an increase in one - year survivals from 2011 births, compared with 2008-2010 births, which reflects improving economic conditions.

Survival rates are available from one-year to five-year in greater geographical and industrial detail via the tables  (1.88 Mb Excel sheet)  published on the Office for National Statistics website.

Table 4: Survival rates of businesses born between 2007 and 2011

  Rate (%)
Births 2007 Births 2008 Births 2009 Births 2010 Births 2011
One year survival 95.4 92.0 90.8 86.7 93.1
Two year survival 81.1 74.0 73.8 72.5 ..
Three year survival 63.0 58.0 59.6 .. ..
Four year survival 52.0 48.9 .. .. ..
Five year survival 44.6