Businesses are 71% more likely to fail in this city than in any other area
Avid Panda has analysed data from Companies House to find the number of new businesses that were incorporated between January 2018 and January 2023 and compared that to the number that have gone into administration, liquidation, or are now dissolved.
The research revealed that Newry is the UK city with the least successful new businesses, with nearly half of the businesses opening in the area in the last five years closing (48.97%).
London takes the second spot at 39%, with 23,546 out of 60,355 new businesses closing in the capital. This is not surprising given that tough competition and high rents push many organisations out of the city.
Newport ranks as the third worst city to open a business, with a business mortality rate of 35.61%. Leicester follows closely behind, with 35.56% of new businesses shutting down since 2018.
Rounding off the top 5 is Chester at 35.14%. Out of the 4,698 businesses that opened, 1,651 have closed.
Whilst it is more difficult for businesses in certain areas to keep their doors open, businesses in other areas appear to be thriving.
The study highlighted that Sheffield is the city with the most successful new businesses, with only a fraction of businesses opened in the last five years closing (2.98%).
This compares to Liverpool at 14.51%, which takes the spot as the city with the second lowest level of new businesses failing. Only 3,696 out of the 25,465 companies that opened in Liverpool have closed.
Carlisle ranks as the third city for successful businesses at 16.85%, followed by St Asaph at 17.25% and St Davids at 19.76%.
