The facts for the Businesses are not great, the figures from the ONS are pretty grim reading, the latest business birth and death rate figures, headline facts are listed here.
- The number of business births increased by 8,000 (3.1%) between 2011 and 2012.
- The number of business deaths increased by 25,000 (11.0%) between 2011 and 2012.
- In 2012 the births of new businesses (270,000) was greater than business deaths (255,000).
- The move towards economic recovery has seen birth rates being higher than death rates from 2011, but the gap has narrowed in 2012.
- London had the highest business birth rate at 14.8% and the highest death rate at 11.7%. Apart from London the number of birth and deaths by region were similar.
- In broad industry terms, accommodation and food services had the highest death rate, at 13.3%.
Get all the tables for this publication in the data section of this publication .
Essentially businesses are more likely to fail at the moment, and although more are being created than are failing or being closed, you could be looking at a 10% chance of failure simply in statistical terms, PER YEAR. Given most new start ups don’t last through their first three years it is critical that you get you message out to your clients right.
BUT this is no better for existing companies. 8,000 new companies a year mean 8,000 people in competition to you at least for your clients money and potentially directly for your products.
IT is critical that you differentiate yourself in your market right now and have staff that not only understand why you do, but WANT to tell your clients.
So What? getting this wrong is quite simply the difference between success and failure.