Starting a business outside London increases chance of survival, eBay reports

Businesses in the Shetland Islands have highest survival-rates in the UK, followed by Melton in the East Midlands and Purbeck in the South West

UK small businesses launched outside of London are more likely to survive than their counterparts in the capital, according to research from eBay UK.

Based on Office of National Statistics (ONS) data, the study found that just 38.6% of London start-ups survive longer than five years in comparison with 45% of businesses in the South West, 44% in the East of England and 42% in Scotland.

The research also revealed the top local authority areas with the highest survival rates, with the Shetland Islands (56%) coming out on top, followed by Melton in the East Midlands (53%), Purbeck in the South West (53%), Selby in Yorkshire & the Humber (52%) and North Norfolk (53%).

Redbridge in North East London was found to have the lowest business survival rate; just 36% of new businesses last longer than five years compared to a national average of 42%.

The study suggests that businesses in more remote locations may be more immune to the “economic turbulence” faced by businesses in the capital and other cities.

Tanya Lawler, eBay UK vice president, said: “Our research shows vital role start-ups play in the British economy, acting as resilient ‘satellites of stability’ and employment.”

Mike Cherry, national chairman of the Federation of Small Businesses (FSB), added: “These results are an encouraging sign that this is beginning to happen and FSB will continue to support moves to help rebalance our economy.”


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