Survival rates of new businesses
The survival rate of new business in the North East is broadly comparable to the national average. Around 3 out of 4 new business survive the first two years, which falls to 4 out of 10 by five years from the birth of the enterprise.
There is not a huge amount variation between the Core Cites on this measure either. Some of the areas with lower two-year survival rates are affected by multiple registrations which impacts the number business removed from the register in these locations.
The survival rate of business born in 2020 in the North East was 6 percentage points lower than in 2019, showing the difficulty of starting a new enterprise during Covid-19.
