Manchester has been home to a visible boom of small businesses over the past decade.
The areas of Northern Quarter and Ancoats have openly welcomed a large wave of quirky, modern-thinking neighbours, with dozens of millennial-manned digital agencies settling in amongst the independent cafes and restaurants.
However, recent data suggests that many of these startups struggle to survive in the long-term.
A study launched by BusinessComparison.com entitled “Startup Cities” has shown Manchester ranks among the worst places to run a successful startup.
According to the website's data, only 37.52% of the 3385 small companies set up in the city were still trading after five years.
This confirmed Manchester as the sixth-worst place in the UK to begin a business behind Plymouth, Portsmouth, Liverpool, Northampton and Glasgow.
Worst places for a startup (& their five year survival rate):
- Plymouth - 30.73%
- Portsmouth - 35.36%
- Liverpool - 35.78%
- Northampton - 35.99%
- Glasgow - 37.46%
- Manchester - 37.52%
- Newcastle-upon-tyne - 38.08%
- Stoke-on-trent - 38.51%
- Kingston-upon-hull - 38.76%
- Leicester - 38.83%
Entrepreneurs appeared to find the most success in Bristol, with 44.36% of new companies in this city surviving past the five-year mark.
Startups also fared well in Bolton, with more than 42% of new businesses succeeding in this Greater Manchester town.
Best places for a startup (& their five year survival rate):
- Bristol - 44.36%
- Brighton and Hove - 44.13%
- Leeds - 42.88%
- Sheffield - 42.66%
- Cardiff - 42.34%
- Bournemouth - 42.31%
- Edinburgh - 42.12%
- Bolton - 42.03%
- Bradford - 42%
- Aberdeen - 41.87%
Whilst location appeared to play a role in the odds of a business making its fifth birthday, nationwide data suggested most will fail within this time period.
Overall, just two in five UK startups manage to trade for a minimum of five years.
You can read the full study online at BusinessComparison.com here.