A STUDY has shown Reading to be the most successful place to open a new business.
Research by CMC Markets has revealed the town has the lowest percentage of closures, with 0.13% of businesses launched between December 2017 and December 2022 going into liquidation.
Using business intelligence software Endole, data shows 6,877 businesses opened within the five year window, with only nine reporting closure.
Nigel Horton-Baker, executive director at Reading’s Economy and Destination Agency (REDA), believes this shows the town to be a prime location for entrepreneurs.
“This latest report highlights Reading as a hotspot for talented entrepreneurs and a location which nurtures successful business growth,” he said.
“Of the nearly 7,000 new businesses constituted in Reading between 2017 and 2022, just 0.13% failed, underlining strong economic growth factors such as a skilled workforce, excellent connectivity, diverse business ecosystems and a strong demand for goods and services locally, as well as the creativity within the diverse business environment.”
Elsewhere in the country, Stoke-on-Trent lands in second place with 6,228 new businesses opening in the last five years and 13 reported closures.
Plymouth is in third place with just 0.27% of new businesses struggling to survive, followed by Welsh capital Cardiff with just 58 closures.
Scottish capital, Edinburgh, also makes the top five places for successful businesses, with a closure rate of 0.41%.
The data reveals Southampton is the place with the highest number of closures in comparison to openings since December 2017, with 162 of these businesses ceasing trading.
Sheffield is next with 3% of closures, followed by Birmingham at 2.04% and Leeds at 1.80%.
Despite having the highest number of new business openings overall, with 35,525, Manchester is also on this list, as 622 of these companies closed down within five years.
The city of London is also one of the areas with the least successful new businesses, seeing 1.38% of closures.
Mr Horton-Baker believes REDA’s support of local business is one of the factors which makes Reading so successful when compared to some major cities.
He explained: “REDA has supported new business development in recent years by funding initiatives such as the Rebel Business School, which teaches people how to start a new business, business masterclasses and Thames Valley Berkshire LEP Growth Hub’s programmes for Start Up and High Growth.”
2023 will see REDA rolling out more start-up training for local people, taking training and advice into the heart of our local communities.
This will be supported by mentoring advice from local business people, who will watch over the developing business and offer advice and practical guidance to help ensure success.
REDA is continuing its work with the Berkshire Growth Hub thanks to funding from UK Shared Prosperity Fund – providing start up guidance for new business and expert advice for high growth companies.
