Ryan FowlerA recent study from BusinessComparison has shed light on the dynamic startup environment in the UK, pinpointing regions and sectors where the newest businesses are emerging. Despite a challenging economic climate, the research presents an optimistic outlook for entrepreneurs.
Philip Brennan, founder and managing director at BusinessComparison, said, “It was really interesting putting this research together. We weren’t surprised to see that London is the region with the youngest businesses on average – but in Barking and Dagenham, Newham, and Hackney, the average age of businesses is actually under five years.”
The study also reveals that the average lifespan of businesses that dissolved in 2023 was just over four years. “The average age of a business when it dissolves has now dropped below five years, to only four years and four months. However, there is plenty of support available to new businesses, including government grants, and Local Enterprise Partnership (LEP) Growth Hubs around the country where you can access up-to-date advice,” Brennan explained.
In terms of sectors, the youngest businesses were predominantly found in service-oriented industries such as food and beverage and postal and courier activities. Interestingly, computer and personal goods repair also featured prominently, reflecting ongoing demand for these services.
London leads with the youngest companies, closely followed by regions like the North East and North West, indicating a widespread entrepreneurial spirit across the UK. Despite a higher rate of business dissolutions before reaching five years, the number of new startups registered between 2022 and 2023 was significant, with over 563,847 businesses making their debut.
