Survival rates put North top of the league

Oct 11 2007 by Chris Knox, The Journal

BUSINESSES in the North-East currently have the highest survival rates in the country, according to a new report.

The number of businesses forced to close down in the region during the third quarter of 2007 decreased by 11.7% compared to the same period last year, putting it top of a national table.

The North-East also came second over the last eight months, with business failure rates dropping by 1.3% during the period. The figures, contained in a report by data analysts Equifax, show that businesses in the West Midlands weren’t so fortunate during the last three months, with the failure rate in the area rising by 15.4% compared to the same period last year. Businesses in London also took a downturn, with the capital’s failure rate increasing by 6.6% in the same comparative period.

Paul McEldon, chief executive at support network North-East Business and Innovation Centre (BIC), said: “The regeneration of the region is reflected in these figures, which show a dramatic positive improvement over a relatively short period of time.

“The continued involvement of support networks in new business’s fledgling stages should ensure that the North-East continues to improve, and thrive as an area where companies can reach their potential.”

Neil Munroe, external affairs director at Equifax, credited the North-East’s strong manufacturing hub as a reason for its ability to deflect much of the damage caused by the credit crunch. He also pointed out that the worst affected areas were those that had a heavier reliance on the high street.

Tim Pain, head of enterprise and business support at One NorthEast, said: “These figures are very pleasing. They are the latest in a series of indicators over the past two years to show the North-East economy closing the economic gap with the rest of the country – more people in work and economic growth outstripping most other parts of the UK.”