According to data from the Office for National Statistics, there were 381,000 new businesses in the UK in 2018. That figure plateaued somewhat from the previous 12 months, when there were 382,000.
However, the same research shows that 336,000 companies went under in 2018 – a sure sign that there are no guarantees when it comes to entering the business world.
So, with that in mind, where in the country is the best place to position a start-up enterprise? TNT have crunched the numbers and compared 12 regions around the UK, using a dozen measurable factors to calculate which are the most advantageous areas for those looking to get their business off the ground.
Get more space for your money in Yorkshire
For those looking to keep overheads to a minimum, the Yorkshire and Humber area may be the place to set up shop. The data reveals that the average weekly rent for commercial properties in that region is £459 – the second lowest after the North East (£450).
At the other end of the scale, however, is the East Midlands, where the average weekly rent is a whopping £1,527 with London (£1,240) and Northern Ireland (£1,102) not far behind.
As you might expect, property prices in Yorkshire/Humber are also towards the lower end at £161,443 while, perhaps unsurprisingly, London topped that particular metric with £471,504.
London life can be kind
Despite those high rental and property prices, setting up in London can prove beneficial to a new business for a number of reasons. For example, 4G connectivity stands at 100%, it boasts the highest average weekly pay for full-time workers at £898.80 and its economic activity rate is above all others at 68.8%.
As for Yorkshire, the economic activity rate falls short of the capital at 62.2%, the average weekly rage is towards the lower end of the scale at £614.10 and 4G connectivity has not quite spread to the entire region, with 3% of the area still missing out on its coverage.
Long-term survival rates highest in the South West
While all of these factors are worth taking into account, perhaps the most telling statistics centre around survival rates. The East of England came out on top when it comes to businesses lasting their first year, with 93.6% of them managing to do so. Companies in Northern Ireland are perhaps less likely to succeed, however, with 88.5% surviving their first year while that figure for Yorkshire and Humber stands at 91.7%.
Taking a longer-term view, 45.8% of businesses in the South West make it to the five-year mark – just ahead of the East of England (45.4%).
Organisations in Yorkshire post similar numbers, at 43.9%, while of companies in the capital, only 39.3% remain operational five years after starting up.