With redundancies and furlough hitting the nation, the number of people setting up small businesses skyrocketed and there has been a surge in micro enterprises (businesses with fewer than 10 employees). Now, money.co.uk reveals the survival rate of these companies across multiple European countries.
UK Home to Most Microenterprises
Money.co.uk聽can reveal that聽the UK聽is home to the聽largest number of micro enterprises which have survived five years聽in Europe. The UK created a whopping聽265,255聽micro enterprises with one to nine employees in 2013, of which an incredible聽114,590聽survived five years. Although this means that the UK has a five-year survival rate for its micro enterprises of聽43%, their surviving businesses more than double those of any other country.
The Countries with the Most Micro Enterprises After 5 Years
Despite survival rates fluctuating by around 30% from the best to worst countries,聽money.co.uk聽also sought to find out which countries produced the聽most businesses聽which survived the five-year period.
Completing the top 10 countries are: Germany, Poland, Romania, Portugal, and Slovakia, in that order.
Best Countries for Micro Enterprise Survival
Money.co.uk聽found that the聽best country for the survival of micro enterprises聽is聽France. Over a five-year period, France boasts a business survival rate of聽75%. In 2013, the country produced聽46,549聽micro enterprises, of which聽35,060聽were still running five years later.
The second most successful country is聽Sweden聽with a five-year survival rate of聽73%. In 2013, the country produced聽17,574聽micro enterprises, of which聽12,908聽survived the five-year period.
Coming third is聽Slovakia聽with a survival rate of聽70%聽for micro enterprises. Slovakia produced聽18,949聽micro businesses in 2013, of which聽13,328 survived five years.
Worst Countries for Micro Enterprise Survival
The country with the聽lowest five-year survival rate聽is聽Denmark. Despite聽over聽8,000聽micro enterprises being created in 2013, only聽3,458聽survived the five-year period, leaving Denmark with a survival rate of just聽42%.
The聽United Kingdom聽ranks second lowest, with a survival rate of聽43%. However, the UK was home to聽the聽most businesses聽that survived five years聽鈥� a whopping聽114,590, twice as many as any other country.
Ranking third from bottom is聽Poland聽with a survival rate of聽44%. The country produced聽nearly聽36,000聽micro enterprises, but聽less than聽16,000 survived five years.
Salman Haqqi, personal finance expert at聽money.co.uk,聽commented on the findings:
鈥淢any businesses have undoubtedly felt the negative impact of the pandemic on profits, but the last 18 months have also seen an increase in the number of聽small businesses around the world.
鈥淥ur analysis of the latest Eurostat figures shows that there are a handful of countries in Europe where the chances of survival are higher than others, specifically in France, Sweden, and Slovakia. Small businesses in these three countries have the highest survival rate on the continent, with over 70% of businesses passing the five-year mark – a vital marker for many businesses.
鈥淲hile there are many ways small businesses can fund themselves – including investors and personal savings, some entrepreneurs may take out a business loan. As with all loans, it鈥檚 important to remember that any money borrowed needs to be paid back, with interest, over a set time period, and missed or late payments can affect your credit score.鈥�
