Where are the UK’s start-up problem regions?
Where is the best place to launch a business startup? Image by Tim Sandle
Small businesses, on the start-up curve, struggle the most to survive in Rhondda Cynon Taf (Wales) over any other place in the UK, as a new study has revealed. Looking at the other weak economic areas, Great Yarmouth ranked second, whilst Newham has the third worst business rates. In contrast, Craven in Yorkshire is the best place to open a small business in the UK.
The research has been conducted by digital marketing agency called Rank Kings. The firm analysed data from the ONS to determine where SMEs are thriving and where they are in fact struggling. The analysis was based on six different factors, including the following: The Active Enterprise Change between 2021-2023, the change in the count of births of new enterprises 2021-2023, the change in the count of deaths of new enterprises 2021-2023, the change of high growth enterprises per 1,000, and the survival rate of SMEs across 3-5 years.
Rhondda Cynon Taf is the local authority where small businesses are struggling the most with a score of 10 out of 10. Rhondda Cynon Taf recorded a 39.8% drop in new businesses being registered between 2021 and 2023 – the tenth biggest drop of any local authority in the UK. Similarly, only 43.6% of small businesses in Rhondda Cynon Taf have survived longer than five years, contributing to the areas ranking in the study.
Great Yarmouth ranked second for where businesses are struggling the most with a score of 9.3 out of 10. The Norfolk town scored particularly low when it came to the birth of new businesses, with -34.8% of new businesses opening between 2021 and 2023. Only 34.9% of businesses in the area manage to survive past five years, which is lower than the UK average of 39.4%.
Newham in London ranked third with a score of 9.1 out of 10. Between 2021 and 2023, there was a 14.9% increase in business deaths in the area – the second worst rate of any local authority in the UK. There has also been a -26.2% drop in new businesses opening in Newham since 2021 too.
Three areas then came joint fourth with a business score of 9.0 out of 10 – Bolton, Bromsgrove and Bury.
Top ten worst areas for UK-based startups
| Rank | Area Name | Active Enterprise Growth (% Change 2021-2023) | Total Score (/10) | 3 Year Survival Rate (%) | 5 Year Survival Rate (%) |
| 1 | Rhondda Cynon Taf | -7.4% | 10.0 | 49.4% | 22.5% |
| 2 | Great Yarmouth | -6.5% | 9.3 | 54.0% | 34.9% |
| 3 | Newham | -2.9% | 9.1 | 53.9% | 35.9% |
| = 4 | Bolton | -8.2% | 9.0 | 46.6% | 27.3% |
| = 4 | Bromsgrove | -42.0% | 9.0 | 18.0% | 13.4% |
| = 4 | Bury | -5.3% | 9.0 | 50.7% | 27.4% |
| 5 | Nuneaton and Bedworth | -5.0% | 8.9 | 48.1% | 32.1% |
Bolton has a five-year survival rate of just 27.3%, contributing to its low overall ranking as well as less than half of businesses in Bolton (46.6%) surviving past just three years.
Only a small number of businesses in Bromsgrove survive past five years, at just 13.4% and a drop in businesses even opening, with over a third (34.9%) drop in rates of businesses opening since 2021.
Bury followed Bromsgrove and Bolton. While just over half of businesses in Bury survive over three years, there has been a dramatic decline in new businesses opening in the area, with a 36.8% drop since 2021.
Placing fifth is Nuneaton and Bedworth with a score of 8.9 out of 10. Less than a third of businesses in the area make it past five years and there has been a 10.2% decrease in the number of new businesses opening since 2021.
On the other end of the scale, Craven is the area where businesses are thriving the most. The area in Yorkshire saw a 32.6% rise in new businesses opening since 2021 and survival rates once open remain high, with over two thirds of businesses staying open well past three years.
Where are the UK’s start-up problem regions?
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