With reports of the retail industry suffering from coronavirus in the short term and rise of e-commerce and online shopping in the long term, what is the landscape of independent small businesses in the UK today? We take a look at the best regions for business and which sectors are most likely to survive on the high-street.
Best Regions For Small Independent Businesses In the UK
Take a look at the best regions for to setup an independent business in the UK. We ranked regions by analysing metrics such as population, average weekly expenditure per person, and percentage of businesses that survive past their 5th anniversary.
| Area | Total Businesses | 5 Year Survival Rate (%) | Population (Millions) | Average Weekly Expenditure per Person (£) |
|---|---|---|---|---|
| South East | 461,170 | 64% | 9.13 | £272 |
| London | 561,060 | 62% | 8.9 | £250 |
| East | 308,180 | 63% | 6.2 | £242 |
| Scotland | 219,460 | 65% | 5.4 | £225 |
| North West | 304,395 | 62% | 7.29 | £213 |
| South West | 273,070 | 62% | 5.56 | £213 |
| Yorkshire and The Humber | 219,180 | 60% | 5.48 | £229 |
| Wales | 124,370 | 65% | 3.1 | £203 |
| West Midlands | 248,370 | 62% | 5.9 | £198 |
| East Midlands | 204,205 | 60% | 4.8 | £229 |
| North East | 87,745 | 60% | 2.66 | £200 |
| Great Britain | 3,011,195 | 63% | 66.4 | £233 |
Survival Rates of UK Businesses
Starting a business from scratch can be daunting, and keeping momentum can be even harder – but which sector is most likely to survive over the years?
Overall Survival of Shops (%):
- Year 1 – 92%
- Year 3 – 71%
- Year 5 -57%
Survival of Shops (%) By Sector:
| Sector | Year 1 | Year 3 | Year 5 |
|---|---|---|---|
| Accomodation | 99% | 93% | 86% |
| Petrol Filling Stations | 99% | 92% | 80% |
| Entertainment | 97% | 87% | 78% |
| Launderettes, Dry Cleaners & Other | 96% | 83% | 73% |
| Chemist, Toiletries & Health | 97% | 84% | 73% |
| Discount & Surplus Stores | 89% | 66% | 53% |
| Furniture, Carpets, Textiles, Bathrooms & Kitchens | 91% | 67% | 51% |
| Off Licenses | 87% | 63% | 48% |
| Fashion & General Clothing | 89% | 63% | 47% |
| Gifts, China & Leather Goods | 86% | 57% | 41% |
Best Store Types for Openings
With statistics showing the number of visitors to UK shops declining we take a look at which sectors have been hit the hardest and which are still on the rise.
| Type | Openings |
|---|---|
| Barbers | 813 |
| Beauty Salons | 495 |
| Tobacconists | 244 |
| Restaurants and Bars | 218 |
| Cafe and Tearooms | 214 |
| Nail Salons | 166 |
| Bars | 145 |
| Health Clubs | 144 |
| Ice Cream Parlours | 92 |
| Supermarkets | 90 |
Worst Store Types For Closings
| Type | Closures |
|---|---|
| Banks | 716 |
| Pubs & Inns | 636 |
| Estate Agents | 448 |
| Fashion Shops | 374 |
| Newsagents | 365 |
| Clothes (Womens) | 317 |
| Electrical Goods | 299 |
| Post Office Servivce | 283 |
| Discount Stores | 230 |
| Dentists | 230 |
Sources:
- https://www.flipsnack.com/LocalDataCompany/resilience-in-the-retail-sector/full-view.html
- https://www.statista.com/statistics/814601/store-types-with-most-store-openings-great-britain/
- https://www.statista.com/statistics/814609/store-types-with-most-store-closures-great-britain-uk/
- https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/articles/highstreetsingreatbritain/2019-06-06#main-points
- https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/datasets/householdexpenditurebycountriesandregionsuktablea33
- https://www.citypopulation.de/en/uk/cities/
- https://www.statista.com/statistics/294681/population-england-united-kingdom-uk-regional/
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Tiago Lavis-Fernandes says
Wow pretty impressive, 5 years with 57% rate looks pretty decent to me as I recently saw some worldwide statistics online that pointed out a 25% rate for 5 years. I’m an Independent Web Designer in Manchester in my first year and so far it’s going pretty well. I’m still scared of hiring staff though so I think I’ll stay like this for 5 years and see how it goes. Great article anyway, keep up the amazing work!