Business Demography

Business births, the creation of new businesses each year, can be seen as a proxy for the creative dynamism in the economy. This chart, showing the rate of births as a percentage of the existing stock, shows some interesting patterns, with some of the highest birth rates in areas which historically have had some of the weakest economic outcomes. This may show that, as the economy evolves and we see strong growth rates in some sectors, areas that have underperformed may be laying the foundations for stronger growth in the future. However, not all business births are entrepreneurial dynamism: it is also possible that people may be starting their own businesses because they cannot find suitable employment in their area. More detailed research is needed to better understand some of these dynamics.

Businesss births and deaths

This hex map shows the birth and death rates (percentage) of businesses, with at least one employee, in 2022. You can use the slider at the bottom of the chart to switch between Births and Deaths.