Annual UK Business Start-Up Review
With more and more people moving on from your typical 9 to 5 jobs and following their dreams, start-ups in the UK have exploded in recent years. So we decided to compile a list of the essential facts we could uncover regarding start-ups' success.
How many businesses are there in the United Kingdom as a whole?
- 82 million micro-businesses (0-49 employees).
- 35,600 medium-sized businesses (50 -249 employees).
- 7,700 large businesses (+250 employees)
How many businesses are classified as SMEs?
- SME businesses account for 99.9% of all companies, with 5.9 million operating.
- Small and medium-sized businesses employ three-fifths of the workforce.
- SME enterprises also account for more than half of all UK company turnover.
Where are the SMEs in the United Kingdom?
- According to GOV.uk figures, London tops the list with 1.1 million.
- Then the South East is in the second position, with 940,000.
- As a result, the South-East of England has been the most successful in establishing private-sector businesses. This area is home to more than one-third of all businesses in the United Kingdom.
- The North East has the fewest companies of any English area, at 152,000.
How many start-ups are in the UK?
- According to annual GOV.uk figures, between 500,000 and 700,000 new start-up businesses are created in the United Kingdom each year.
- In the private sector of businesses in the United Kingdom, the business population expanded by 3.5% (+200,000 companies) over the previous year.
- London had the greatest business birth rate (15.9%), while the North West had the highest business death rate (13.5%).
- Since 2000, the average yearly growth rate in the start-up population has been +3 %.
How many new businesses fail in the United Kingdom?
Dissolvency took 508,865 businesses between the years 2018 and 2019. Of course, not all are start-ups, but given that roughly 20% of businesses fail in their first year, we should anticipate around 130,000 of these to be start-ups, implying that around 26% of dissolved businesses are in their first year.
How many companies fail in their first year?
Creating a company entails taking a significant risk of failure. Approximately 20% of businesses fail in their first year, and approximately 60% fail within their first three years.
Why do businesses fail?
CBInsights surveyed 101 start-up workers and founders to determine why those businesses failed.
38% Cashflow
Money and time are limited resources that ought to be handled wisely. One of the most common causes for failure was a lack of funds, an inability to get financing/investor interest, closely followed.
35% No market need
In 35% of situations, tackling exciting challenges rather than those that satisfy a market need took the No. 2 spot for the cause of failure.
20% Got outcompeted
Despite the common wisdom that entrepreneurs should not be concerned about competition, the fact is that if a concept becomes popular or receives market validation, others may attempt to profit from the opportunity. While worrying about competition is unhealthy, ignoring it was a formula for failure in 20% of start-up failures.
19% Flawed business model
Most unsuccessful companies agree on the need for a business model - sticking to a single channel or failing to develop methods to earn money at scale made investors wary and founders unable to capitalise on any traction acquired.
18% Legal and compliance
A company may sometimes expand from a basic idea into a world of legal complexity that might eventually lead to its demise.
15% Pricing/cost issues
Regarding company success, pricing is a black art, and start-up post-mortems emphasise the challenge of pricing a product high enough to pay costs yet low enough to attract users eventually.
14% Not the right team
Staff diversity with varied skillsets was frequently recognised as crucial to a company's success. Failure post-mortems frequently moaned, "I wish we had a CTO from the beginning," or that the business had "a founder who liked the business part of things."
The answer is Simplicity
Are you one of the 38% struggling with funds? Simplicity is here to help. We provide 100% funding for temp and permanent recruitment businesses. So whether you have one or 100+ workers, Simplicity's scalable funding pays your workers and you, your margin - every week – without fail.
Please feel free to contact us on 01594 888518 to learn more about our recruitment finance solution. Or download a copy of our financing brochure.
Recruitment start-up hub: REGISTER FREE TODAY
The Recruitment Start-up Hub partners with a wide range of experienced suppliers in the recruitment industry. Providing recruiters with the expert knowledge required to get started and run a successful recruitment business. With FREE access to hints, tips and guides about starting and running your own - all in one place.
Find out more about the Recruitment Start-up Hub here: https://www.recstartuphub.co.uk/