Tower Hamlets second worst for business survival rates in London, study reveals
PUBLISHED: 17:00 08 January 2020
The East End has one of the lowest startup business survival rates in the capital, research has revealed.
Just over one in three - 35.6 per cent - of new ventures included in the analysis last five years or more in the borough, BusinessComparison.com's study shows.
Of 3,315 Tower Hamlets based businesses which started in 2013, 1,180 were still operating in 2018.
The numbers were crunched from the latest business demography statistics from the Office for National Statistics.
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Lambeth and Islington have been excluded as their figures are potentially unreliable due to the high number of businesses registrations at single postcodes.
Ranked second from bottom out of 31 boroughs, Tower Hamlets sits between last placed Newham and Barking and Dagenham which respectively saw 34.9pc and 36.7pc of businesses survive the five year mark, the study shows.
Bromley was named the capital's startup hotspot with 46.6pc of new firms still around after half a decade.
However, London ranked bottom out of 12 UK regions on 39.4pc compared to top placed south west England on 45.6pc.
London's 1.08 million self-employed, micro and small businesses, make up 99.3pc of all private sector businesses, turnover £500billion cumulatively and employ 2.3million people, according to the Federation of Small Businesses.