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Figures reveal survival rate for new businesses in Lichfield and Burntwood

New figures have revealed the survival rates for new businesses in Lichfield and Burntwood.

Lichfield District Council House

Lichfield District Council House

A report to a meeting of Lichfield District Council’s economic, growth and environment scrutiny committee this evening (12th November) examined the outlook for enterprise start-ups across the region.

Based on the number of businesses started in 2011, the report showed that the five-year survival rate stood at 47.8%, compared to 45.3% across Staffordshire.

But the study also revealed that in 2016, 760 new companies started up, while in the same year 490 closed.

The report said: “Further investigation is needed to understand why there is a sharp demise of enterprises within the district and how the service can offer support to overcome the issues which enterprises are having.

“The resulting case that may be presented is that businesses aren’t aware of the support on offer, with enterprises that gain suitable help sustaining long term prosperity and survival.

“A key priority in the economic development service’s role is to disseminate and raise awareness of the support and advice that is available to the local business community and residents.”

But the report added that Lichfield and Burntwood were still attractive to companies.

It said: “Lichfield district is an attractive area for new business enterprises due to its quality built and natural environment, excellent transport links and residents’ skills and abilities.”

“A relatively prosperous economy”

Cllr Ian Pritchard

Cllr Ian Pritchard

Cllr Ian Pritchard, Cabinet member for economic growth, environment and development services at Lichfield District Council, said the local authority was keen to ensure the area was fertile ground for businesses to boom.

“We are very lucky to have a high business start-up rate in Lichfield district, which brings in jobs and boosts the local economy,” he said.

“A result of this high number is that it adds to the risk of more businesses failing, but the ratio of survivals against the failures is still a great margin within our area when compared to neighbouring authorities and regional rates.

“However, we never want to see a local business fail, and we need to understand what is happening and how we can better support them.

“Working in partnership, we have a number of business programmes, which offer training, networking and grant funding to local businesses. We will focus on promoting these programmes and the opportunities they offer as well as talking to local entrepreneurs to find out what challenges they face.

“Overall we have a relatively prosperous economy with a high business start-up rate, an economically active population, and low retail vacancy rates.

“All of this, plus our attractive city centre and surrounding towns and landscapes, and great links to road and rail networks, means that we are an attractive place to do business, and we will continue to work to encourage more companies to base themselves in the district.”

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  1. PG Tips

    12th November, 2018 at 4:27 pm

    If anyone is interested in the rumours from the districts-business-minds, they do not have a plan in place to secure Lichfield’s shopping centre. Instead of helping out shop fronts and SME, the governing district council intends to rely more on tourism then local commerce. Keep an eye out for hotel-plans, coach trips and more tourist signs..

  2. John Griffiin

    12th November, 2018 at 4:43 pm

    Actually appalling figures. Either the people concerned were idiots, or were very ill-advised (both business and financial), or were scam artists, or the economic climate is driving desperate people to try something stupid – like a gift shop or a nail bar – in poor economic circumstances, or simply the business rates were too much. It’s a sad reflection that these figures may be commonplace. One could accept say a 25% rate, with an onset rate that is declining as the business niches are filled.

  3. Doug Pullen

    13th November, 2018 at 9:43 am

    John, these are *5 year* survival rates – anyone who’s been in business knows that you’ve got a roughly 50/50 chance of making it to the 5 year mark. Nationally the survival rate is 44%; in Lichfield District it’s 47.8%. There’s always more to be done (probably by national government rather than local gov, to be honest), but certainly not “appalling”.