Bristol is a strong start-up city, supported by dynamic creative and aerospace industries

Bristol is a strong start-up city, supported by dynamic creative and aerospace industries

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

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