A new nationwide study has identified the UK areas where small businesses face the greatest challenges staying afloat — with Rhondda Cynon Taf emerging as the most difficult place in the country for SME survival.
The research, carried out by Rank Kings, analysed official data from the Office for National Statistics to assess where small and medium-sized enterprises are thriving — and where they are struggling to survive.
Wales tops the list for business pressure
Rhondda Cynon Taf ranked worst overall, scoring 10 out of 10 for business difficulty. The study found a 39.8% fall in new business registrations between 2021 and 2023, alongside weak long-term survival rates. Fewer than half of local businesses make it beyond three years, and just 22.5% survive longer than five years.
Great Yarmouth placed second, with a score of 9.3, after recording a 34.8% drop in new business births over the same period. Long-term survival also remains challenging, with only 34.9% of businesses lasting beyond five years, below the UK average.
Newham ranked third, scoring 9.1, driven by a sharp rise in closures. Between 2021 and 2023, business deaths in the London borough increased by 14.9%, while new openings fell by more than a quarter.
Sharp declines in other parts of England
Bolton, Bromsgrove and Bury jointly ranked fourth, each scoring 9.0 out of 10, though for different reasons.
Bolton recorded a particularly low five-year survival rate of just 27.3%, while fewer than half of businesses survive even three years. Bromsgrove showed the weakest long-term survival rate of all areas studied, with just 13.4% of businesses lasting beyond five years, alongside a 42% collapse in new business openings. Bury, meanwhile, saw a 36.8% fall in new enterprises since 2021, despite moderate short-term survival rates.
Nuneaton and Bedworth rounded out the top five most challenging locations, with less than a third of businesses surviving beyond five years and a continued decline in new openings.
Areas where businesses are struggling the most
| Rank | Area | Active Enterprise Growth (2021–2023) | 3-Year Survival | 5-Year Survival | Score |
|---|---|---|---|---|---|
| 1 | Rhondda Cynon Taf | -7.4% | 49.4% | 22.5% | 10.0 |
| 2 | Great Yarmouth | -6.5% | 54.0% | 34.9% | 9.3 |
| 3 | Newham | -2.9% | 53.9% | 35.9% | 9.1 |
| =4 | Bolton | -8.2% | 46.6% | 27.3% | 9.0 |
| =4 | Bromsgrove | -42.0% | 18.0% | 13.4% | 9.0 |
| =4 | Bury | -5.3% | 50.7% | 27.4% | 9.0 |
| 5 | Nuneaton and Bedworth | -5.0% | 48.1% | 32.1% | 8.9 |
A brighter picture in Yorkshire
At the opposite end of the scale, Craven in Yorkshire was identified as the best place in the UK to open a small business. The area recorded a 32.6% increase in new businesses since 2021, with strong survival rates once firms are established. More than two-thirds of local businesses continue trading beyond three years.
Adapting is key to survival
Commenting on the findings, John Almond, Director of Rank Kings, said the results highlight stark regional differences in business resilience.
“The findings of this study ultimately indicates that some local authorities are better equipped to not just see new businesses open, but keep them open sustainably, than others. It’s interesting that Wales seems to be particularly struggling, with seven areas in the top 50 worst areas being located in Wales.”
He added that businesses operating in high-risk areas need to adapt quickly to changing customer behaviour.
“Businesses in this ranking must adapt and engage with customers in traditional and non-traditional ways, for example, ensuring a presence on social media, whether that’s through fun TikTok videos or engaging in local groups on Facebook.”
As economic pressures continue to affect local high streets, the study suggests that survival is increasingly shaped by location, adaptability and the ability to connect with customers beyond traditional footfall alone.