Our new analysis of business survival rates across the UK shows a clear regional divide, with fewer than half of new businesses in UK towns and cities reaching their fifth birthday.
This comes as reports suggest that more than 50,000 British firms are in critical financial distress, while 36% of UK small businesses say they are stuck in survival mode. This comes amid slower economic growth and persistent inflationary pressures, with high costs continuing to weigh on business confidence and discourage hiring.
Our insolvency practitioners have analysed business survival rates across UK regions, and our Director, Richard Hunt, Director at Liquidation Centre, explains what the findings mean and shares his advice for businesses navigating this challenging environment.
Key Findings:
- Doncaster has the lowest five year business survival rate in the UK at just 33.5%. Of the 10,105 businesses started there between 2012 and 2019, 3,385 were still trading five years later.
- Liverpool (33.8%), Newport (34.4%) and Manchester (35.9%) are among the locations with the lowest business survival rates.
- Bath has the highest five year business survival rate at 46.7%.
- The South West leads with 45.2% survival across all its local areas, followed by the South East (43.7%). Rates are lower in the North East (40.2%) and North West (39.6%).
- Across the 84 towns and cities analysed, the five-year business survival rate is 39.8%.
Cities with the lowest five year business survival rates
| Rank | Town / City | Region / Nation | 5 year survival rate (%) | Businesses started 2012 to 2019 | Still trading after 5 years |
|---|---|---|---|---|---|
| 1 | Doncaster | Yorkshire and the Humber | 33.5 | 10,105 | 3,385 |
| 2 | Liverpool | North West | 33.8 | 13,800 | 4,660 |
| 3 | Newport | Wales | 34.4 | 4,570 | 1,570 |
| 4 | Salford | North West | 34.8 | 8,845 | 3,075 |
| 5 | Wolverhampton | West Midlands | 34.9 | 9,210 | 3,210 |
| 6 | Oldham | North West | 35.4 | 7,970 | 2,820 |
| 7 | Bolton | North West | 35.5 | 12,355 | 4,385 |
| 8 | Manchester | North West | 35.9 | 18,025 | 6,470 |
| 9 | Blackpool | North West | 36.1 | 4,570 | 1,650 |
| 10 | Portsmouth | South East | 36.4 | 7,725 | 2,815 |
*For the full data set including all regions, cities, and sectors analysed, email us here.
Doncaster has the lowest five year business survival rate in UK
Doncaster has been revealed to have the lowest five year business survival rate in the UK, with just 33.5% of businesses making it to their fifth birthday. This is also 6.3 percentage points below the towns-and-cities average across the country.
Liverpool and Newport also saw low five year survival rates, at 33.8% and 34.4% respectively.
Regional differences in business survival
The South West recorded the highest survival rate across the local areas analysed, at 45.2%, followed by the South East at 43.7%.
By comparison, the North West recorded a five-year survival rate of 39.6%, while the North East recorded 40.2%, highlighting a regional divide in business survival rates.
Across all 84 towns and cities analysed, the average five-year survival rate was 39.8%. That means the typical rate was roughly two in five businesses still trading after five years.
Richard Hunt, our Director at the Liquidation Centre, says:
“What’s particularly striking about these figures is the scale of the gap between locations. A five-year survival rate of 33.5% in Doncaster compared with 46.7% in Bath shows that businesses are operating in very different local economic environments and that there are clear regional disparities.
“Of course, location is only one part of the picture. Survival will also depend on factors including sector, business model, management, access to finance and the individual financial position of the business. But the regional differences suggest that the wider economic environment can have a significant bearing on a business’s ability to survive those crucial first five years.”
Cities with the highest five year business survival rates
| Rank | Town / City | Region / Nation | 5 year survival rate (%) | Businesses started 2012 to 2019 | Still trading after 5 years |
|---|---|---|---|---|---|
| 1 | Bath | South West | 46.7 | 7,180 | 3,355 |
| 2 | Exeter | South West | 46.4 | 3,825 | 1,775 |
| 3 | Basingstoke | South East | 45.8 | 7,495 | 3,430 |
| 4 | York | Yorkshire and the Humber | 45.6 | 6,660 | 3,035 |
| 5 | Maidstone | South East | 45.3 | 7,310 | 3,310 |
| 6 | Chelmsford | East of England | 44.8 | 8,055 | 3,610 |
| 7 | Worthing | South East | 44.7 | 3,750 | 1,675 |
| 8 | Cambridge | East of England | 44.5 | 5,015 | 2,230 |
| 9 | Cheltenham | South West | 44.0 | 5,155 | 2,270 |
| 10 | Solihull | West Midlands | 43.6 | 8,330 | 3,635 |
*For the full data set including all regions, cities, and sectors analysed, email us here.
Bath has the highest five year business survival rate in UK, with almost half of businesses reaching their fifth birthday
Bath has emerged as the location with the highest survival rate, as 46.7% of businesses reach their fifth birthday. That is 13.2 percentage points higher than that of Doncaster, which has the worst survival rates.
Exeter ranks second, with 46.4% of businesses surviving for five years, followed by Basingstoke at 45.8%. York ranks fourth at 45.6% and is the only location in the top ten from the Yorkshire and Humber region.
Richard Hunt, our Director at the Liquidation Centre, comments on the data and offers key advice for businesses:
-
“From an insolvency perspective, businesses rarely get into financial trouble overnight. We often see businesses reach the point of insolvency after a prolonged period of squeezed margins, rising costs and slower sales over months or even years. By the time a director seeks professional advice, there may be very little room left to manoeuvre.
“That’s especially tough for small businesses. There’s only so much extra cost you can absorb, and putting prices up isn’t always possible if customers are watching what they spend.
“Getting a business off the ground is one thing; making it sustainable is another. The fact that so many businesses do not make it to their fifth birthday highlights how difficult it can be to turn a new business into one that lasts. In those first few years, you’re still building a customer base and working out whether your sales will consistently cover your costs. If they don’t, the financial pressures can become increasingly difficult to manage.
“My advice is to keep a close eye on cash flow, rather than just profit. A business can be profitable on paper and still run into serious difficulty if customers pay late, costs rise unexpectedly or too much cash is tied up in stock and outstanding invoices. Check your margins regularly, know what’s coming in and going out, and ask for advice as soon as you spot a problem. The earlier you act, the more options you’re likely to have.”