Regional Businesses Outlive London Enterprises
Companies founded in the Shetlands trade for longer than anywhere else in the UK, while Redbridge is a hotbed for business failure
Regional businesses are outliving their London counterparts with just 33% of small enterprises from the nation’s capital reaching their fifth birthday, according to a report by eBay UK.
Based on figures from the Office of National Statistics, the survey revealed that the South West region has the healthiest survival rate for small firms with 45% still active past the five-year mark compared to 44% in the East of England and 42% in Scotland, while the national business survival-rate after five years sits at 42%.
When broken down into local authorities, businesses founded in the Shetland Islands (56%) were found to be the ‘most resilient’ followed by Melton (53%) and Purbeck (53%) yet no area in London featured in the top 10 areas for top survival-rates – suggesting regional businesses are most resilient to economic turbulence.
Outside of London, small businesses in Redbridge were found to be be the most likely to fail with just 36% living long enough to see a sixth year.
Looking to the future, eBay said it predicts the areas of Northampton, Rugby and Coventry to have the biggest growth of business ‘births’ in the coming decade.
Mike Cherry, national chairman of the Federation of Small Businesses, said:
“The long term prosperity of the UK relies on spreading growth and productivity gains across the regions. These results are an encouraging sign that this is beginning to happen and FSB will continue to support moves to help rebalance our economy.”