If you are thinking about starting a business, there are many factors which can impact your chance of success, with location being one of the most important. While many business owners consider aspects such as the marketing strategy, branding and staff, the actual location of the business is a factor which is often overlooked. We analysed data sourced from the latest Business Demography statistics from the Office for National Statistics, to understand new business survival rates.
Where is the best place to start a business?
According to our research we found that the city offering the best chance of business survival is Bristol, with 44.4% of new businesses making it to 5 years. The city has experienced substantial growth in industries such as creative media, aerospace and electronics. There are many companies which are developing cutting edge technology, which helped earn Bristol the title in 2017 of the UK’s leading smart city.
Other notable cities include Sheffield, Leeds and Brighton and Hove, which all sit above the national average of business survival rates. Considering the figures more broadly, the South West region offers the highest business survival rate. Although, starting a business in the North should not be overlooked with many of the cities to the north offering excellent growth opportunities for those in the manufacturing and technology industries. For example, according to Tech City, Sheffield tops the list of the top places to launch a digital business in the UK.
Where is the worst place to start a business?
At the other end of the scale sits Plymouth, where less than one in three businesses don’t reach the 5 year mark. Although, it is also worth noting that London has a surprising survival rate of just 39.3%, which is the lowest figure for any of the regions in the UK. However, if you are based in London you can improve your businesses chances of success by situating your startup in one of the boroughs with a higher survival rate. For example, businesses started in Bromley have a better chance of surviving than those in Camden.
Why is location so important?
There are many factors which determine why some locations are a better choice than others, including both practical and non-practical aspects. For example, the physical cost of your business address, living costs for staff, startup support, competition and networking opportunities, will all impact the success of your startup.
Many business owners believe that starting a business in London is the most natural choice, however with high property prices many start-up’s struggle to hit the ground running. However, cities outside the capital such as Manchester, which is known as the Northern Powerhouse, could offer promising opportunities for businesses which are just starting up.
Although many businesses are based entirely online, in practice the location of this business will still impact the chance of success. It may seem as if working from home in the countryside is idyllic, however, you will need basic infrastructure to succeed. For example, a fast broadband connection, employees as your business grows and a nearby strong infrastructure network.
Finding the ideal location is just one aspect of starting your business, however here at BusinessComparison we can help you find your feet. Whether you are looking to arrange the best business energy deal for your new premises or find a new business bank account, our team can help you find the best deals for your unique situation. We can help you compare financial products so that your business has the best chance of success possible. For more information, see our full research on Startup Cities.