Start a Business

Starting a business can be nerve racking. It is a long and winding path full of uncertainties but the pay-off can be worth it. Especially for those who always had dreams of starting their own business, now is a pretty good time. The UK is experiencing a boom of economic growth with businesses starting left and right.

Business Statistics

Statistics show that the UK has had a rise in small businesses, implying a favourable market. Comparing the rates at which businesses start and end can give an insight on the state of the economy.

In the UK, the ratio between birth and death rates of businesses is a positive one. In 2017, the UK experienced a 14.6% birth rate compared to an 11.6% death rate. As long as the birth rate for businesses is higher than the death rate, it means that there is still room for more. The market has not yet reached saturation, which means you can still hop on board.

Aside from birth and death rates, there is another statistic to take note of – survival rate. This value represents how long businesses tend to stay afloat.

Some studies show that most businesses (a number higher than 90%) fail within 10 years. If you want to try your luck, then the UK is a more forgiving market. The current survival rate for the UK is a whopping 44.1% in 5 years. That means that roughly 44.1% of business that started in 2011 are still up and running as of 2016.

Geography

The best places in the UK for businesses have been in the southern region. While Scotland, London, and the North West have rooms for improvement, the South West, Northern Ireland, and the South East have been experiencing good business.

In general, there are more businesses per person in southern England than the rest of the UK. Use this information to your advantage if you want to start a business to give yourself a fighting chance.

Type of Business

Aside from the location, the type of business is also a major factor when it comes to the statistics of a business. One can see a trend that the more a business is needed, the more of them pop up.

In the UK, businesses with the highest birth rates are in the administrative, transport, and education industries. Compare these with the businesses with the highest death rates: finance and property.

In the real world, there are businesses that are more high risk than others. This pertains to their survival rates. Businesses with the highest survival rates include healthcare, information and communication, and real estate.

Highlights in the UK

The UK has been gaining the lead when it comes to flexible workspaces. By definition, flexible workspaces replace the traditional office environment. Gone are solitary and industrial cubicles.

Research shows that flexible workspaces lead to increased productivity. The dynamic environment also promotes communication and collaboration among colleagues.

In the UK, 10.6% of office spaces are flexible workspaces compared to the 2.9% in Manhattan. In 2017 alone, there has been a 190% increase (from the previous year) in leased flexible workspaces in the UK.

Major companies have also noted the UK as a hub for business. As of 2017, the largest companies using flexible workspaces in London were Wework, Google, and Amazon. With the trend spreading to other major cities in the UK, flexible workspaces are here to stay.

Conclusion

It may be nerve racking but it’s not a total gamble. Armed with the statistics, one has higher chances of gaining success when starting a business in the UK in the right area and the right business.