About the data
According to ONS data, in 2022 there were 24,995 businesses in Somerset, a increase of 50, or 0.2% on the previous year. Between 2018 and 2022, the number of businesses in Somerset increased by 755, or 3.1%. This is positive growth and higher than that seen for the South West (2.8%) but at a slightly slower rate than the UK (3.7%) as a whole over the same period.
If we exclude agriculture and public administration, then the difference in growth rates between Somerset and regional and national averages is more visible. Between 2018 and 2022, there was an increase of 5% of businesses in Somerset, compared to an increase of just 3.96% for the South West, and 4.2% for the UK as a whole.
The same Business Demography figures show that in 2019 there were 2,320 business births in Somerset, which given the total stock of businesses in the county represents a birth rate of 10.5%. In the same year the South West business birth rate was 10.5% and the UK business birth rate was 12.8%.
Business survival rates in Somerset are broadly similar to those for the South West as whole, but notably higher than they are nationally, beyond the first year or so. Among businesses in their first year, survival rates are typically similar, with 94% of new enterprises set up in 2020 in Somerset remaining active in 2021, compared to 93.4% and 92.9% for the South West and UK respectively. However, the three-year survival rate for businesses started in 2018 was 62.3% in Somerset, compared to 62.4% for the South West and 57.6% for the UK. The five-year survival rate for businesses started in 2016 was 44.1% in Somerset, 37.1% for the South West, and 38.4% for the UK.
Source: ONS, Business Demography, UK 2020