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.

Health And Education Businesses Surviving Well

Business demographics for 2009 show that there were 236,000 business births, a rate of 10.1% and 279,000 business deaths, a rate of 11.9%. There were 2.3m active businesses in the UK during 2009, up 16,000 on 2008. The highest birth rate was in business administration and support services with 13.9%, the lowest was production with 7.3%. The highest death rate was also in business administration and support services with 14.8% and the lowest was in health with 7.2%. The median birth rate was property with 9.1% and death rate professional, scientific and technical with 11.2%. London had both the highest birth and death rates with 12.6% and 13.7% respectively. Outside of London, the highest birth rate was in the North East with 10.4% and the highest death rate was in the North West with 12.8%. The five year survival rate from 2004 was 46.8%. N.Ireland had the highest five year survival rate with 52.9% the lowest was London with 41.9%. Health had a five year survival rate of 58.9% and education 58.1%. Hotels and catering was lowest with a 35.2% five year survival rate.