 London-based agents may boast higher-valued stock and a higher footfall than competitors in every other region across the UK, but they are also paying higher set-up and operating costs. Set-up costs in the apital are 16% higher than the national average, due to higher labour and commercial rents, which are around 40% higher, according to the SME Business Cost Index published by the Centre for Economic and Business Research and Make It Cheaper. Conversely, Wales attracts the lowest number of start-ups, despite boasting the lowest set-up costs, at 4% less than the national average, followed by the North East (3.8% lower) and Yorkshire & The Humber (3.5% lower). The national average business birth rate is 10.2%, which means that around 10 new businesses are set-up every year for every hundred that already exist. However, this has been a declining trend since 2005, falling from 13.0% to 10.2% between 2005 and 2009. Only the North East and Scotland saw business birth rates increase during the pre-recession period (2005 to 2007). The capital has the highest business birth rate at 12.6%, followed by the North East and Yorkshire & The Humber at 10.4% and 10.2% respectively. Wales suffers from among the lowest entrepreneurial activity across the UK, with a business birth rate of just 9.1%. The study is based on independent research among owners and managing directors of 750 UK small businesses. |