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.
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 rate1in 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 2007 to 2017 across Herefordshire and England.
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