North West is powerhouse for start-ups – but SME survival rates lag other regions

The North West continues to prove a hub for innovation and enterprise, with new data finding that 33,000 new businesses were launched in the region throughout 2023.

But concerns remain over the high rate of company failures within five years of foundation.

Despite economic challenges, figures from the Office of National Statistics shows that the region continues to lead on business creation across the North and Midlands, cementing the region’s status as a dynamic engine of growth outside London.

Greater Manchester remains a central driver of the region’s business growth, contributing more than 14,500 new enterprises in 2023, while Manchester city alone saw the birth of 3,630 new business, reflecting the area’s resilience and strong support ecosystem for start-ups, creatives, and tech-driven ventures.

However, while the North West’s business birth rate remains nationally competitive at 11.6% – second only to London at 12.6% – long term performance is more difficult.

Only 30% of businesses survive to their fifth year, lagging behind the national average of 40%.

Mike Williams, office managing partner of intellectual property firm Marks & Clerk’s Manchester office, and co-author of The IP-Driven Startup, said: “It’s inspiring to see the North West leading the way in business creation, but to give our start-ups the best chances for success, founders must not overlook intellectual property (IP) assets.

“Protecting your IP early isn’t just about legal protections, it’s about securing your competitive edge, attracting investors and building a foundation for long term growth.”