Analysis of new start-ups has revealed that the transport sector is the most successful when it comes to the longevity of running the business.
The sector took the top spot on an analysis of government data by firm CircleLoop, which revealed that the “death rate” of new transport start-ups was only 52%.
Comparatively, office-based start-ups and financial services firms had a death rate above 70% within the first year of their launch with the worst performing sector being waste management services.
Interestingly, and connected to transport through logistics, the postal and courier services sector came in second place with 55% of businesses failing in the first year.
Speaking about the findings, Damian Hanson, co-founder at CircleLoop, said: “We hope to see that even after the struggles of 2020, people will continue to take the entrepreneurial step into setting up their own business.
“After the year we all had, it’s possible that our macroeconomic climate has driven more people to create either a new business to replace a lost job or even a ‘side hustle’ business to compensate for the loss of income in 2020 due to COVID-19.
“Starting your own business is a huge challenge, and the first few years can be gruelling. In fact, it’s not unusual to see new business enterprises fail within the first year. However, with the right idea and plenty of resilience and perseverance, a startup might just be successful.”