Bristol has the best five-year business survival rate, according to new statistics from BusinessComparison.com.
Supported by recent Office of National Statistics (ONS) figures, the study shows that just four in ten UK start-ups survive their first five years in business.
To identify the most prosperous city for start-ups, researchers looked at the how many businesses were started in UK cities in 2013 and how many were still going in 2018.
In Bristol, 44.4pc of new start-ups survive to the five-year mark, with an economy based on the creative media, electronic and aerospace industries. The only other cities who were above the UK average of 42.43pc were Brighton and Hove (44.1pc) and Leeds (42.9pc).
| Rank | Town/city | New start-ups in 2013 | Five-year survival | Five-year survival rate |
|---|---|---|---|---|
| 1 | Bristol | 2,570 | 1,140 | 44.36pc |
| 2 | Brighton and Hove | 1,960 | 865 | 44.13pc |
| 3 | Leeds | 3,895 | 1,670 | 42.88pc |
| 4 | Sheffield | 2,145 | 915 | 42.66pc |
| 5 | Cardiff | 1,665 | 705 | 42.34pc |
| 6 | Bournemouth | 910 | 385 | 42.31pc |
| 7 | Edinburgh | 2,730 | 1,150 | 42.12pc |
| 8 | Bolton | 1,380 | 580 | 42.03pc |
| 9 | Bradford | 2,250 | 945 | 42pc |
| 10 | Aberdeen | 1,445 | 605 | 41.87pc |
>See also: The essential guide to starting a business in Bristol
Plymouth is languishing at the bottom of the list with the lowest start-up survival rate in the UK. Fewer than one in three (30.7pc) new ventures last beyond five years.
| Rank | Town/city | New start-ups in 2013 | Five-year survival | Five-year survival rate |
|---|---|---|---|---|
| 21 | Kingston upon Hull | 890 | 345 | 38.76pc |
| 22 | Stoke-on-Trent | 870 | 335 | 38.51pc |
| 23 | Nottingham | 1,335 | 510 | 38.2pc |
| 24 | Newcastle upon Tyne | 1,195 | 455 | 38.08pc |
| 25 | Manchester | 3,385 | 1,270 | 37.52pc |
| 26 | Glasgow City | 2,830 | 1,060 | 37.46pc |
| 27 | Northampton | 1,445 | 520 | 35.99pc |
| 28 | Liverpool | 2,250 | 805 | 35.78pc |
| 29 | Portsmouth | 905 | 320 | 35.36pc |
| 30 | Plymouth | 1,090 | 335 | 30.73pc |
Unsurprisingly, the south west was the region with the highest business survival rate at 45.6pc. Each of the three regions with the highest survival rate were located in the south, with 44.7pc in the east of England and 44.6pc in the south east. London contradicts this trend with a survival rate of 39.3pc, the lowest of any UK region.
Northern and Scottish businesses found it harder to reach five years, with 41.9pc surviving in the north west, 41.7pc in Scotland and 41.1pc in the north east.
Which industries have the best chance of survival?
Drinks manufacturers (53pc), residential care (52pc) and the creative arts and entertainment industry (52pc) had among the highest five-year survival rate in the study.
| Rank | Industry | New start-ups in 2013 | Five-year survival | Five-year survival rate |
|---|---|---|---|---|
| 1 | Manufacture of coke and refined petroleum products | 5 | 5 | 100pc |
| 2 | Activities of membership organisations | 1,230 | 735 | 59.76pc |
| 3 | Manufacture of beverages | 310 | 165 | 53.23pc |
| 4 | Residential care activities | 555 | 290 | 52.25pc |
| 5 | Creative, arts and entertainment industries | 2,845 | 1,485 | 52.20pc |
| 6 | Manufacture of other non-metallic mineral products | 325 | 165 | 50.77pc |
| 7 | Legal and accounting activities | 8,580 | 4,330 | 50.47pc |
| 8= | Water collection, treatment and supply | 10 | 5 | 50pc |
| 8= | Programming and broadcasting activities | 260 | 130 | 50pc |
| 8= | Libraries, archives, museums and other cultural activities | 130 | 65 | 50pc |
Petrol and fuel refineries (100pc) undoubtedly performed well, but the industry is an outlier as only five such businesses started up in 2013, and all of them survived.
Meanwhile, insurance (13pc) and clothes manufacturers (30pc) are proving to have a tough time, as well as various niches within the mining sector.
Need to find the right city for your start-up? Check out these city guides featured in the top 10:
The essential guide to starting a business in Leeds
The essential guide to starting a business in Cardiff
Starting a business in Edinburgh: A small business guide
