Nearly two in five new businesses have already disappeared in Portsmouth, study reveals

Nearly two in five businesses launched in Portsmouth over the past five years are no longer operating, according to new research.

placeholder image — Nearly two in five new businesses have already disappeared in Portsmouth, study reveals | Source: Unsplash

Business experts at LEI Register analysed Companies House data for companies incorporated over the last five years across major UK cities. Researchers compared the number of businesses launched with those that are no longer active to reveal where new companies are disappearing at the fastest rate.

Portsmouth ranks 35th in the UK for business closures, with 38.65% of companies incorporated over the last five years no longer operating. Of the 8,851 businesses launched during the period, 3,421 have since closed.

The findings mean almost four in every 10 businesses created in Portsmouth over the past five years have already disappeared, highlighting the pressures many start-ups face in establishing long-term success.

Belfast recorded the UK's highest business closure rate at 53.55%, followed by Brighton (49.39%) and Wolverhampton (48.45%). Worcester (47.08%) and Gloucester (46.82%) complete the top five.

Despite recording one of the highest numbers of new businesses, Birmingham also features near the top of the ranking. Of the 106,867 companies incorporated over the last five years, 49,268 are no longer operating, giving the city a closure rate of 46.10%.

London, the UK's largest business hub, also recorded a significant number of closures. Nearly 497,000 of the 1.16 million businesses incorporated over the period are no longer active, resulting in a closure rate of 42.89%.

At the other end of the table, Derry recorded the UK's lowest closure rate at 25.53%, followed by Armagh (29.72%), Newry (29.98%), Tunbridge Wells (30.97%) and Exeter (32.66%), suggesting businesses launched there have been far more likely to remain active.