The UK is not the best place in the world to start a business, according to the latest research.
A recent study weighed up factors such as population, business survival rates and the average cost of living, with the UK coming thirteenth in the list of 15 countries.
The overall score is hampered by a five-year enterprise survival rate of just 44 per cent, with a score of 1.15 out of three for the cost of living. This means that despite an employment rate of 75 per cent, the UK ranks behind countries such as the US and Belgium, who came first and second respectively.
The US placed top because of a mixture of excellent average annual salary, high business survival rate and a healthy employment rate. The best states for business start-ups in the US are New York, California and Texas according to the study.
Ireland, Canada, France, Sweden, Australia, Germany, Latvia, the Netherlands and Italy also made the list of the top 15 countries to start a business, ahead of the UK. Meanwhile, Spain and Portugal dragged behind at 14 and 15, respectively.
Interestingly, there are also a number of start-up hotspots within the UK. London is ahead in terms of numbers, with a particular focus on the hugely successful tech hubs, while the data found that Birmingham was a particularly successful start-up centre.
Birmingham is home to the largest business population outside of London, whilst also offsetting some of the capital’s less stable elements. The city also enjoys a more reasonable cost of living, with a thriving tech industry of its own.
Jon Stocker, General Practice Partner at Milsted Langdon, said: “While the UK doesn’t rank top for start-ups, there are plenty of positive aspects. The high employment rate is a particular positive, with the thriving technology sector and success of cities such as London and Birmingham having a clear impact on the economy.
“For advice on matters relating to start-ups, contact us today.”