According to research conducted by Creditsafe, businesses started in London are more likely to survive than those launched in other European capitals.
Looking at data collected between January 2014 and July 2015, it’s clear London is the most hospitable capital for young fast-growth companies. Indeed, just 0.39% of London start-ups failed compared to 0.75% businesses in Berlin, 2.95% in Paris, and 3.15% in Brussels.
However, while London scored a better start-up survival rate, its increase in the number of active businesses was less than in Berlin and Paris. The UK capital, though, is still significantly ahead in terms of total start-up numbers.
“The analysis points to a huge variance in economic recovery and growth across Europe”, says Rachel Mainwaring, operations director of Creditsafe. “While London, Berlin and Paris are all successfully incubating new businesses, Brussels in going in reverse.” She concluded rather grimly, however, that “even in rapidly expanding cities thousands of businesses are still failing each year”.