It is no secret that the number of small businesses has rocketed in the last year. Now, new research shows that the UK has the best ranking for the survival of small businesses.
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Increased Number of Small Businesses
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The number of small businesses has听skyrocketed听in the past year. With a wave of听redundancies and furloughing听alongside spending more time at home, people took the opportunity to set up their own small businesses. This has meant that the world has seen an increase in 鈥榤icro enterprises鈥� 鈥� businesses with less than 10 employees.
Interested in finding out which countries are the best at producing lasting micro enterprises,听money.co.uk investigated the performance of businesses with one to nine employees in 28* different European countries to find out what percentage of these businesses survived a five-year period.
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United Kingdom: Number One
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Money.co.uk听can reveal that听the UK听is home to the听largest number of micro enterprises which have survived five years听in Europe. The UK created a whopping听265,255听micro enterprises with one to nine employees in 2013, of which an incredible听114,590听survived five years. Although this means that the UK has a five-year survival rate for its micro enterprises of听43%, their surviving businesses more than double those of any other country.
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The Countries With the Most Micro Enterprises After Five Years
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Despite survival rates fluctuating by around 30% from the best to worst countries,听money.co.uk听also sought to find out which countries produced the听most businesses听which survived the five-year period.
Completing the top 10 countries are: Germany, Poland, Romania, Portugal, and Slovakia, in that order.
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Best Countries for Micro Enterprise Survival
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Money.co.uk found that the best country for the survival of micro enterprises is France. Over a five-year period, France boasts a business survival rate of 75%. In 2013, the country produced 46,549 micro enterprises, of which 35,060 were still running five years later.
The second most successful country is听Sweden听with a five-year survival rate of听73%. In 2013, the country produced听17,574听micro enterprises, of which听12,908听survived the five-year period.
Coming third is听Slovakia听with a survival rate of听70%听for micro enterprises. Slovakia produced听18,949听micro businesses in 2013, of which听13,328听survived five years.
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Worst Countries for Micro Enterprise Survival
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The country with the听lowest five-year survival rate听is听Denmark. Despite听over听8,000听micro enterprises being created in 2013, only听3,458听survived the five-year period, leaving Denmark with a survival rate of just听42%.
The听United Kingdom听ranks second lowest, with a survival rate of听43%. However, the UK was home to听the听most businesses听that survived five years听鈥� a whopping听114,590, twice as many as any other country.
Ranking third from bottom is听Poland听with a survival rate of听44%. The country produced听nearly听36,000听micro enterprises, but听less than听16,000听survived five years.
Salman Haqqi, personal finance expert at听money.co.uk,听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听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 鈥� a vital marker for many businesses.
鈥淲hile there are many ways small businesses can fund themselves 鈥� 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�
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