Start up success rates UK

[NickZ]

The UK has a 30% Success-rate in their Startups.

The UK failure 70% and success rate of 30%.
Seen in https://www.demandsage.com/startup-statistics/
Only Switzerland scores better, the US scores 20%.

Governments failures have little to do with success. While some governments are exceptionally good at screwing up.

 

[fisicx]

This is not new news. In fact I'm surprised it's as high as 30%.

If you read a different report you get a different set of stats:

Startup Failure Rate Statistics (2025)

Explore the most up-to-date statistical roundup on startup failure rates – including startup costs, top reasons for failing, and sector statistics.

explodingtopics.com

 

[NickZ]

The site is about American startups.

75% of American startups go out of business during the first 15 years.

 

[fisicx]

My point is that a high failure rate of startups isn’t news. It’s been like this since records began.

Or are you trying to make some other point I’ve missed.

 

[Mark T Jones]

Stats are always fun

The biggest variance id look for is the relative ease of setting up a business below the radar - in the UK it's very easy, and i suspect there are thousands of shoddy unacknowledged businesses that disappear without a trace.

Many European countries are far more strict, which will skew the stats

 

[WaveJumper]

I wonder how many of these so called start ups actually "start" a lot seem to jump in and form a company never to actually do anything with it, I wonder if these are counted in the numbers or just ones that go pop

 

[fisicx]

And a lot of those startups include someone on shopify selling soap and petering out after a few months.

Or someone deciding to be a window cleaner only to discover it can be cold and wet and no fun in the winter.

This is why the stats are meaningless. They don’t even define what they mean by startup.

 

[MikeJ]

The site is about American startups.

75% of American startups go out of business during the first 15 years.

A company lasting 14 years is not a failure!

It's very easy to start a company in the UK, far easier than some other countries. You really can't do a like for like comparison.

 

[Paul Kelly ICHYB]

The UK has a 30% Success-rate in their Startups.

The UK has a 30% Success-rate in their Startups.

The UK failure 70% and success rate of 30%.

What is the definition of success and failure? Across what time scale.

I couldn't see what year/dates the report refers to, but on the basis that in 2024 there were over 800k startups in the UK, I would doubt the validity of that report!

 

[DontAsk]

What is the definition of success and failure? Across what time scale.

What were the reasons for failure?

 

[Paul Kelly ICHYB]

Exactly? Is success that they are still alive or they are making profit? Is failure closure or not making profit?

 

[NickZ]

, but on the basis that in 2024 there were over 800k startups in the UK,

do you have a source for that?

 

[Chris Ashdown]

I was always told that the 70% failure in the UK was for companies lasting 3 years. think it came from some startup book

 

[Paul Kelly ICHYB]

UK Business Statistics 2025 - Business Facts and Stats Report | money.co.uk

The latest UK business statistics for 2025, covering topics including revenue, creation, lending, and UK business statistics by industry, region, and size.

www.money.co.uk

UK startup trends show growth stabilised in 2024 | NatWest Business

NatWest’s latest Startup Index highlights the trends, challenges, and opportunities shaping the UK's startup ecosystem.

www.natwest.com

 

[NickZ]

UK startup trends show growth stabilised in 2024 | NatWest Business

NatWest’s latest Startup Index highlights the trends, challenges, and opportunities shaping the UK's startup ecosystem.

www.natwest.com

The 2nd one give that number 800+k so there is an inaccuracy.

Startups are a driving force in the global economy, with over 150 million startups worldwide. The United States leads with 1.14 million startups, followed by India with 493K startups.

 

[NickZ]

The 2nd one give that number 800+k so there is an inaccuracy.

2nd update:

There are more than 150 million startups worldwide, of which 1.14 million startups are in the United States.

 

[DontAsk]

I'm confused. Both links say 800k+ for UK, so how does India come 2nd with just 493k?

How do they count them anyway?

How do you count sole trader startups, where the timescale requirement to register as self employed is much more relaxed than it use to be (now Oct 5th following the end of tax year where you start).

A "startup" could be someone testing the water on ebay or etsi with their £1k personal trading allowance. They might decide not to bother. Is that a failure?

 

[Paul Kelly ICHYB]

If they got the UK number wrong, should you believe the other numbers?

 

[NickZ]

If they got the UK number wrong, should you believe the other numbers?

up to you if you wish to believe. One miss on a number is not that grave.
Anyway is financing easier in 2025 than it was in 2000?

 

[Paul Kelly ICHYB]

One miss? By 500k? That's not a miss, it's a totally different trajectory!

The UK hasn't had under 400k startups in probably 10+ years!

 

[Mark T Jones]

up to you if you wish to believe. One miss on a number is not that grave.
Anyway is financing easier in 2025 than it was in 2000?

Yes.

 

[Gecko001]

The UK has a 30% Success-rate in their Startups.

The UK failure 70% and success rate of 30%.
Seen in https://www.demandsage.com/startup-statistics/
Only Switzerland scores better, the US scores 20%.

Governments failures have little to do with success. While some governments are exceptionally good at screwing up.

This source is certain ambiguous. They seem to pick data from various sources and quote them as fact when in fact they nearly all conflict with each other. For example:

"

• 90% of the startups fail.
• 1 in 5 startups fail within their first year of operation.
• 10% fail in their first year after launching.
• In the United States, 80% of startups fail.
• 65% of startups manage to survive for an average of 15 years.
• First-time entrepreneurs have an 18% success rate when launching a startup.
• 42% of startups fail because they fail to meet market demand with their product."

It seems that all sources, whether they be from the USA or UK or anywhere, do not give what they define as failure or success.

Also, do they include sole trader businesses? There is no register of sole trader businesses in the UK, so I cannot see how they could get much data about them to determine how many are successful or otherwise. Since about 50% of businesses in the UK are sole trader businesses, if they are not included in the data, it is a big proportion to leave out.

 

[fisicx]

It’s quite likely an AI generated post. If you look at the author’s other contribution they all have the same AI feel.

 

[NickZ]

There is no register of sole trader businesses in the UK, so I cannot see how they could get much data about them to determine how many are successful or otherwise

European Countries are quite shy when it comes publishing data.
And to make matters worse the UK government is closing their platform instead of modernizing, reorganizing and splitting their activities in hundreds of different data-centers, thus avoiding a central shut down. https://www.theregister.com/2025/03/03/collapse_of_ukcloud_hurt_govt/

They are ill advised using MS office, Google Cloud by their own staff.

And nowadays we need to see the influence of AI. The page could take the sourced data, while the source used AI to procure that data. A good venture idea is to List Data without AI. Independently.

 

[fisicx]

@NickZ - not quite sure what sort of point you are making. The article you linked to has nothing to do with the number of small businesses ans startups in the UK.

 

[Paul Kelly ICHYB]

do you have a source for that?

More information:

Incorporated companies in the UK April to June 2025

www.gov.uk

"between October and December 2024, there were 181,261 incorporations in the UK, a decrease of 33,185 (15.47%) compared with the same period in 2023"

That's in just 3 month. I do not think that under 200k were registered in the previous 9 months!!

 

[Gecko001]

More information:

Incorporated companies in the UK April to June 2025

www.gov.uk

"between October and December 2024, there were 181,261 incorporations in the UK, a decrease of 33,185 (15.47%) compared with the same period in 2023"

That's in just 3 month. I do not think that under 200k were registered in the previous 9 months!!

You do realise that not all startups are incorporated.

 

[Paul Kelly ICHYB]

I do, which indicates that the numbers are a lot higher than those reports show!

 

[Gecko001]

Maybe incorporation does not have the same advantages that it once had. Certainly there is a greater cyber risk due to the compulsory publishing of information about the business and directors on the internet. If there are certain tax advantages in being incorporated, these might be now under threat.

 

[mikewilliam474]

UK startup success rates are improving but still challenging:

Around 92% of new UK businesses survive their first year, but only about 40–45% make it to year five.

Main failure reasons: cash flow issues, low demand, and strong competition.

Overall, early-stage failure rates are at their lowest in a decade, showing startups are becoming more resilient.


Sources: PwC (2025), Statistics

 

[fisicx]

Around 92% of new UK businesses survive their first year

Can you link to the source for this. I'd have thought the figure was far lower.

Is this just incorporated businesses or does it include Terry who starts up a Shopify business selling candles and give up 6 months down the line after selling two candles to his mum.

 

[tony84]

What do we define as failure?
One of my mates was made redundant, he went self employed but then got a job. Closed the business down as it was only really earning him maybe £15-20k a year where as employed he is on £40k. He didnt fail, he voluntarily closed it down due to a better option.

Likewise 15 years doesnt really feel like a start up. I have been trading for 12 years, does that mean if I closed tomorrow I would have failed? I think I have done alright to be fair haha.