UK start-up survival rates beat Europe » SMEInsider

UK start-up survival rates beat Europe

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More than 90 per cent of businesses launched in the UK survive their first year of business, according to new research from Rousseau Associates, compared to just 83 per cent across Europe.

The UK’s relatively relaxed employment laws and a raft of government initiatives could be behind the ‘robust health’ UK start-ups, the business consultancy said.

Of the 234,000 UK businesses founded in 2011 a full 93 per cent survived a full year, Rousseau Associates said, compared to 79 per cent in France and 78 per cent in Germany.

Michael Heath, business development director at Rousseau Associates, said: “UK small businesses have been given a helping hand with favourable government policies which have allowed them to keep growth on track.

“These policies have helped to make it less of a risk for start-ups to take on new staff and expand. While zero hours contracts have often been misunderstood they can offer both employers and employees flexibility.”

He continued: “The recession also forced a great deal of innovation. For example, while the high street facing huge numbers of voids the pop-up shop and restaurant model provided an efficient way for entrepreneurs to test new concepts before setting up a business.”