Business births and deaths

Count of births and deaths of enterprises

In 2016, there were 7,355 business births in the North East LEP area. This is equivalent to 45 births for every 10,000 adults in the region.  

  • This is below the England excluding London and England rates 

  • If the North East had the same business birth rate as England excluding London, there would have been approximately 11,700 business births in 2016 – over 4,300 more.


6,100 businesses closed in the North East LEP area during 2016. This is equivalent to 37 closures for every 10,000 adults in the region. This is below the England excluding London (55 per 10,000 adults) and England (65 per 10,000 adults) rates.  


Whilst this 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, 2016

Last updated:
02/03/2018
Published by:
North East LEP

Source: Business demography (ONS)

Data information: Based on the North East LEP area