With the UK average at 39%-41% survival for new businesses within the first 5 years, Newcastle scored exceptionally well at 52%, owing its survival success to being a digital powerhouse whilst maintaining its manufacturing foundation, combined with a collaborative business culture and manageable operational costs.
Newcastle topped the rankings ahead of Rutland (50%) and Leeds (48%), which considered various factors including average business annual income, number of businesses set up and industries.
The study ranked the top 10 UK locations by startup survival rate, was carried out by consumer finance platform, Pheabs. The report hailed the success of Newcastle in supporting new startups and businesses through its reinvention as a modern business hub.
Iwa Adio, who curated the study for Pheabs acknowledged "Newcastle's remarkable transformation and business survival leadership."
She highlighted: "It is a brilliant achievement for Newcastle, where 2,847 new businesses are established annually across a population of 302,820. The city has reinvented itself as a digital powerhouse whilst keeping its feet firmly planted in manufacturing reality.
"Maybe there's something about the Geordie approach to business that seems to work: less flash, more substance, and a genuine willingness to help each other succeed rather than engaging in cutthroat competition."
Other thriving locations mentioned on the list include Rutland (50%), Leeds (48%), York (47%), Surrey (44%), and Bristol (44%).
Adio continued: "Whilst we celebrate these achievements, we should also be asking why on average only 1 out of every 2 small businesses or startups in the UK are able to survive and why this number isn't higher.
“We are aware that business rates and costs of labour continue to increase very fast, but this could open up more room for economic policies to help small businesses and startups with cash flow, which is likely to be the main reason for not being able to survive.”
The complete study and methodology can be found here: https://pheabs.com/guides/top-10-uk-locations-with-highest-startup-survival-rate/
| Location | 5-Year Survival Rate | Avg. Business Annual Income | Population | Businesses Set Up Each Year | Notable Highlights | Popular Industries |
| Newcastle, Tyne and Wear | 52% | £185,000 | 302,820 | 2,847 | Highest five-year survival rate in UK | Digital, Manufacturing |
| Rutland | 50% | £145,000 | 41,049 | 165 | Best survival rate for small counties | Agriculture, Local Retail |
| Leeds, Yorkshire | 48% | £210,000 | 812,000 | 8,420 | Outperforms London for business growth | Finance, Tech, Retail |
| York, Yorkshire | 47% | £165,000 | 210,620 | 1,890 | Historic business resilience | Tourism, Retail, Education |
| Surrey | 44.77% | £235,000 | 1,196,236 | 12,450 | Best UK location for high-value business | Finance, Tech, Professional Services |
| Bristol | 44% | £195,000 | 467,099 | 4,820 | Major innovation hub | Aerospace, Tech, Finance |
| Lancashire | 41% | £138,000 | 1,498,300 | 5,015 | Matches national average in supportive region | Manufacturing, Agriculture |
| Kent | 40.5% | £152,000 | 1,578,500 | 8,170 | Most new enterprises in UK | Logistics, Retail, Construction |
| Manchester | 40% | £172,000 | 547,000 | 6,240 | Major northern business hub | Finance, Tech, Media |
| Hackney, London | 40% | £168,000 | 279,665 | 3,580 | Fastest-growing business count in UK | Creative, Tech, Hospitality |