If you’re just starting your business, finding a flexible, shared workspace can prove to be a difficult task. However, you don’t have to be alone while trying to make this work. There are numerous companies that will help you find the perfect flexible workspace for you to base your operations in.
Business Birth and Death Rates in the United Kingdom
Now, more than ever, new businesses are exploding in the United Kingdom. The number of newly founded companies was never higher and it keeps breaking its own record each year.
The number of businesses created in 2011 was 261,000, while in 2016 it was 414,000. That’s almost double! Compared to the number of existing businesses, the growth rate was 11.2% in 2011 and 14,6% in 2016.
This also means that the ‘death-rate’ of certain businesses is also at an all-time high.
230,000 businesses were closed in 2011, while there were 382,000 ‘pronounced dead’ in 2016. However, you will notice that the growth still exceeds the death rate by a small margin. For every 12 businesses that are forced to close, there were 13 new ones in 2016.
If you look at the span of 5 years from 2011 to 2016, you will realise that 44,1% of businesses have survived. That means that of all the newborn businesses in 2011, less than half of them were still working 5 years later.
Best and Worst Industries for Business
Highest Business Birth Rates
Transport and storage, business administration & support services and education are some of the industries with the highest business birth rate in the UK.
This means that there is enough demand in order for such a high number of people to be able to start working.
Highest Business Death Rates
Finance and insurance are the clear highlights here, with an astonishing percentage of 17% of total businesses in the industry being forced to close each year. The runner-ups are property & business administration & support services, with 15% of jobs in the industry dying off each year.
Highest & Lowest Business Survival Rates
Health, property, information & communication industries all have more than 50% survival rate, which is a great number. However, accommodation and food services have the lowest survival rate, with just 34.6% of business being able to last more than 5 years before closing.
Best and Worst Regions for Business
London, West Midlands and East are the highest business birth rate regions in all of United Kingdom.
On the other hand, London has the highest business death rate in the UK, with 14% of newborn jobs being shut down each year. Scotland and North West UK are closely behind with the death rates of 11,8%.
South West, South East and Northern Ireland have the highest survival rates, all close to 47%. London is also important to mention, as it has the lowest survival rate in all of UK, it being 41,7%.
Flexible workspaces are the most popular business trend of 2018. Famous companies such as Google or Amazon all use flexible workspace to accommodate their workers.
London is the current global capital of flexible workspace, while New York holds the second place. However, the gap between the two cities is very high, as London market is comprised out of 10,6% flexible workspace. The rate is only 2,9% in Manhattan.
Almost 2/3 of the UK’s flexible workspace is located outside of London, as the trend rapidly spreads to other cities, such as Manchester, Birmingham and Bristol.
Each year, there are more business being born in the UK compared to the year before. The business death rates are also higher, but that is to be expected, considering the rapid growth rate.
Having a great flexible workspace is a growing trend in successful companies, both big and small. For more information, check out our infographic below!