New businesses in London have lowest survival rates
20 02 2007 United Kingdom
The government’s latest research shows that the survival rate of businesses in their first year of trading has dropped for the first time in ten years
London has the lowest survival rates of the English regions – 91 per cent of businesses live through their first year but only 67 per cent reach their three-year anniversary. The boroughs of Newham, Barking & Dagenham and Waltham Forest had three-year survival rates of only 59 per cent.
The statistics are based on VAT-registered businesses, comparing the numbers still registered at intervals up to three years after first registration.
The trends show that businesses in Yorkshire and Humber and the North West have improved their survival rates by 5 percentage points since 2000.
More sparsely populated areas tend to have higher survival rates than urban areas, with Northern Ireland businesses continuing to top the UK’s table of survival - nearly 80 per cent reaching their third anniversary.
Hotels and restaurants have low survival rates – one in ten businesses close within one year of registration and four out of ten close within three years.
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