Business Start-Ups Up In 2011

The number of business start-ups increased by 11.2% between 2010 and 2011 according to a recent statistical bulletin on business demography from the ONS. The increase of 26,000 brought the total number of business births to 261,000. The number of businesses that ceased trading fell by 20,000 to 230,000 or 7.9% during the same period.

Regionally, the highest number of start-ups was seen in London with a start-up rate of 14.6% or 61,000. The North East with 11.2% and the North West with 11.1% also figured among the regions at the top of the table. The highest rate for businesses ceasing to trade was in the North West with 10.7% or 25,000, then London with 10.4%.

The information and communication category saw the highest rate of increase in start-ups with an increase of 14.8% followed by professional, scientific and technical with 14.3% and business administration and support services with 14.1%. Business administration and support services also saw the biggest numbers cease trading with a rate of 11.9% follwed by finance and insurance at 11.5%. The highest numbers were in professional, scientific and technical with 39,000, construction at 35,000 and business administration and support services with 25,000.

The UK 5-year survival rate for businesses starting in 2006 to 2011 was 45%. The highest 5-year survival rate was seen in N.Ireland with 50.5%, the lowest was in London with 41.8%. The industry group with the highest survival rate was health with 60% and education with 52.8%. Hotels and catering was lowest with 35.7% lasting 5 years.

Business Survey Estimates Fall In Number Of Jobs

The Business Register and Employment Survey estimates that for September 2010 there were 26.8m employees, down 134,000 on 2009. Tha largest fall among the countries of the UK was in Scotland at 73,000.

The region with the most employees was London with 4.1m (15.3% of UK employees) next came the South East with 3.7m (13.8%). London also had the highest proportion of full-time employees at 74.1%. Other regions had less than 70%. The regions with the lowest number of employees were Northern Ireland with 705,000 (2.6%) and the North East with 999,000 (3.7%) with over a third part-time.

In the UK as a whole, there were 18.1m full-time and 8.7m part-time employees. The health sector continued to have the largest number of employees with 3.6m. The industry with the lowest number of employees was agriculture, forestry and fishing with 214,000 (0.8%). Construction employment decreased the most down 118,000 employees. Mining, quarrying and utilities had the largest proportion of full-time workers at 93.3%. The retail sector had the largest proportion of part-time workers at 57.2%. Business administration and support services grew by 62,000.