UK Start-Up's sees Highest Survival Rates in Three Years

According to reports from the Barclays and Business Growth Fund (BGF) Entrepreneurs Index, UK start up companies have seen it's highest survival rates in three years which is a huge boost for UK Enterprise.

Between December 2014 and June 2015 there was a 4% rise in active companies, which was the biggest increase since 2012 when entreprenurial activity first started being tracked by the BGF. The IT sector took up 8% of the start up companies and investment deals within that period. That same period also saw company dissolutions fall from 193,699 to 170,359, the first time that has happened since the index began. Investments in start up companies also saw a 5% increase that resulted in £200,000 worth of deals within that period. However, the number of high growth businesses in the UK with revenues between £2.5m and £100m saw a 21% fall between December 2013 and December 2014. 

“The dip in the number of companies that are dissolving is testament to the growth in business confidence we have seen in recent years, allowing UK businesses not just to start up, but to succeed." Said Dena Brumpton, head of Wealth Management at Barclays. “Since 2012, the appetite for creating new businesses has grown exponentially, due to a number of factors – from an improving economy to the rise of entrepreneurs over the age of 50 – the UK’s start-up scene is thriving.”

The chief executive of BGF, Stephen Welton also added  “The fact that the first half of 2015 has seen the UK’s biggest rise in the number of active companies since the Entrepreneurs Index began in June 2012, and also the first decrease in the number of these businesses failing is extremely positive. We need to continue to invest in ambitious British businesses in order to contribute to the health and robustness of the UK economy.”