The Best Places in the UK for Business Survival

But it raises a big question: where in the UK does a new business actually stand the best chance of long-term success?

To find out which UK cities really give startups the best shot, Touch Financial analysed Companies House data on businesses launched between 2015 and 2019, and checked which ones are still going strong in 2025.

By looking at which businesses lasted a full ten years, the data shows clear patterns by location, without the confusion caused by short-term trends or the impact of the pandemic.

The Best Places in the UK for Business Survival

Data: Startups from 2015-2019, full data set and methodology can be found here.

While London remains the busiest city for startups, the data suggests that smaller cities may offer better odds of survival, potentially thanks to closer business communities, lower overheads, and more supportive local ecosystems.

4 Reasons Why So Many Startups Fail?

Annabel Ah-Lim, Finance Director at Touch Financial, highlights the most common challenges:

1. Cash Flow Issues

“Cash flow is usually what breaks a business, and it’s not always because things are going badly, it’s often down to late payments. If you’re waiting 60 or 90 days for a client to pay, you’re left scrambling to cover wages or supplier bills in the meantime. It’s stressful and takes up hours you could spend growing the business. Spotting cash flow gaps early and having a plan, like using invoice finance or setting stricter payment terms, can stop that pressure from snowballing.”

2. Lack of a Clear Strategy

“A lot of people start with a brilliant idea but no real plan for how they’ll grow. Without goals, it’s easy to get stuck or miss warning signs when something’s not working. Sitting down with an accountant or mentor to map out the next 6–12 months, things like sales targets, funding options, or grants, can make a huge difference. It’s not about having a 20-page business plan, just a clear idea of how to get through both the good and the rough patches.”

3. Difficulty Reaching Customers

“Marketing is the first thing many founders cut back on, especially when money feels tight. The problem is, if no one knows you’re there, sales dry up. Even small, consistent efforts, like social media content, email newsletters, or local networking, can build a steady flow of customers. You don’t need a huge budget; it’s about being visible and keeping your name out there.”

4. Operational Pressures

“Running a business isn’t just about the product, there’s admin, compliance, payroll, and supplier management. Without support, it’s overwhelming. But cities like Bristol, Manchester and London have business hubs like Bristol’s Engine Shed, Manchester’s Business Growth Hub, and Grow London Local that can make a big difference.”

Nationally, around half of UK businesses don’t survive beyond their third year. But this deeper look at nearly a million limited companies shows your odds can be much better, or much worse, depending on the city you start in.