UK SMEs ‘more resilient’ in some regions than others, says study

A study of Small and Medium-sized Enterprises (SMEs) across the UK has found that firms in certain geographical areas have a tendency to be more resilient than others within their first five years of doing business.

According to a report carried out by online seller and retailer eBay, just two out of five start-up firms operating in the City of London tend to survive longer than five years, in comparison with 45 per cent in the South West, 44 per cent in the East of England and 42 per cent in Scotland.

The results show that while being in Britain’s capital could have its advantages, City start-ups may be struggling with costly overheads or increased competition.

eBay’s study also probed local authorities and found that the Shetland Islands and Melton in the East Midlands ranked among the top five regions with the highest rates of business survival, at 56 per cent and 53 per cent respectively.

Purbeck in the South West of England and Selby in Yorkshire also ranked highly, at 53 and 52 per cent.

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

Experts have argued that there are numerous ways start-up firms and small businesses can maximise their profits and enhance their potential – regardless of their geographical location.

Firms seeking tax-efficient business success are highly advised to contact professional advisors for tailored advice.