Business births and deaths

Count of births and deaths of enterprises


In 2018, there were 6,750 business births in the North East LEP area. This is equivalent to 41 births for every 10,000 adults in the region.  

  • This is below the equivalent rates for England excluding London and England overall (64 and 75, respectively)

  • It is the lowest rate among the 8 core city LEPs

  • If the North East had the same business birth rate as England excluding London, there would have been approximately 10,400 business births in 2018 – about 3,700 more.


During 2018, 6,020 businesses closed in the North East LEP area. This is equivalent to 37 closures for every 10,000 adults in the region. This is below the rates for England excluding London (58) and England (66) and is the lowest among the core city LEPs..  

Within the North East, business birth and death rates were lower than in England excluding London for every local authority area. Both rates were highest in Newcastle upon Tyne with the business birth rate being lowest in Sunderland and the business death rate being lowest in County Durham.


Whilst low business death rates in the North East would initially appear to be a positive finding, research has shown that the most dynamic and successful regions have both high birth and death rates. There is a strong connection between high birth rates and high death rates for two reasons:

  • Approximately one quarter of start-ups close in first two years

  • Some start-ups displace existing companies, for example, by introducing better products or processes.


Business births and deaths per 10,000 adult population, 2018

Last updated:
21/11/2019
Published by:
North East LEP

Source: Business demography (ONS, last updated 19 November 2019)

Data information: Based on the North East LEP area, core city LEP areas, England excluding London and England


Business births and deaths per 10,000 adult population, 2018, North East local authority areas

Last updated:
10/06/2020
Published by:
North East LEP

Source: Business demography (ONS, last updated 19 November 2019)

Data information: Based on local authority areas, North East LEP and England excluding London