Help us improve our website and give us some feedback via our website survey.

Business births, deaths and survival rate

Births, deaths and active business 2007-2017

The following information looks at the formation (birth) and closure (death) of businesses as well as the survival rate. These statistics are based on the registration of businesses on the VAT (Value Added Tax) and PAYE (Pay As You Earn) tax schemes.

Key points:
  • For the first time since 2008, in 2013 the number of new business start-ups in Herefordshire outgrew the number of business closures. This pattern continued to 2016, but again in 2017 more  business closures recorded than start ups resulting in a total of 8,480 active businesses in Herefordshire.
     
  • The new business registration rate1 in Herefordshire is lower than that of west Midlands but higher than England as a whole.

  • During 2017 there were a total of 760 business births in Herefordshire and 765 deaths, and the active business population was 8,480 (figure 1).
  • Across West Midlands and England there were more business start ups recorded than business closures.
  • The turnover of businesses (the rate of births and deaths) in Herefordshire is generally lower than across England.
    (figure 1).

Figure 1: Rate of births and deaths as a proportion of active businesses in 2004 to 2015 across Herefordshire and England.

Business births and deaths 2007-2017

Source: Office for National Statistics 

  • In 2017, the rate of business births per 10,000 population aged 16+ in Herefordshire was 47.1, lower than that of West Midlands region (65.2) and England as a whole (75.4).

  • Survival rates amongst the Herefordshire business population are generally greater than nationally for businesses that have been active for 3 years or more.  

  • Businesses locally and nationally are at most risk of closure when they are between 2 and 3 years old.
     

The rate of business registrations per 10,000 resident population aged 16 and above

 

Last updated: Thursday, December 06, 2018