Business Demography 2010
Enterprise births, deaths and survival
Published; December 2011
Summary

Blackburn with Darwen has 4,365 active enterprises, a quarter of the Pennine Lancashire
total and 8.7% of Lancashire 14 Authority total.

In 2010 Blackburn with Darwen experienced a fall of 180, or 4% in the number of active
enterprises on 2009 levels, this is higher than both the regional and national figures.

The UK experienced a decrease of 42,000 active businesses on 2009 levels, a fall of 1.8%.
The North West experienced a fall of (3.3%) or 7,850 active enterprises.

In 2010 there were 445 business births in Blackburn with Darwen, a rate of 10.2%.
This compares to 570 births in 2009, a rate of 12.5%.

In the same period there were 585 business deaths in Blackburn with Darwen, a rate of
13.4%. This compares to a rate of 13.0% for 2009.

For the second consecutive year business deaths exceeded business births.

The business death rate is highest in Blackburn with Darwen (13.4%), higher than the
regional and national rates of 9.9% and 10.2% and higher than the Pennine Lancashire
(12.2%) and the Lancashire 14 district rates (12.9%).

As with the national and regional trend each of the six Pennine Lancashire authorities
recorded higher business death rates than birth rates during 2010. From 2004 to 2008 births
exceed deaths, the exception being 2009 where for the first time business deaths are
greater than births.

Survival of newly born businesses in Blackburn with Darwen shows that after year one over
nine out of ten newly born businesses survive, eight out of ten of all new business births
survived till year two, six out of ten till year three and only a half of all newly born
businesses survived till year four.

By year five Blackburn with Darwen recorded a business survival rate of 39.0%. All other
authorities with the exception of Burnley had business survival rates higher than 40% at
year 5. The highest survival rate was 46.7% in Pendle, higher than the regional and
national average.
Business births and deaths
The figures in this article are derived from the Inter-Departmental Business Register. It contains
information on VAT traders and PAYE employers in a register comprising over two million enterprises,
representing 99% of UK economic activity. The IDBR was first published on the 28th November 2010
and replaces the BERR ‘Business start-ups and closures: VAT registrations and de-registrations’. For
the purpose of this paper the following definitions are used.



Birth: a business that was not present in the previous two years
Death: a business that was no longer present in the active file (these figures are subject
to revision)
Survival: a business that was a birth in the specified year and has survived to the next
year and onwards.
Data relating to business births and deaths can be downloaded from Office of National Statistics
(ONS website)
Page 1 of 6
Active Enterprises
Table 1: Business births and deaths
North West
United Kingdom
Active
enterprises
2009 (B)
236,095
Active
enterprises
2010 (B)
228,245
Difference
(B-A)
% Change
09/10
-41,545
-1.8%
2,341,900
2,300,355
-7,850
-3.3%
Source Office for National Statistics: Business Demography: Enterprise Births, Deaths and Survival
1 as a percentage of active enterprises
There were approximately 2.3 million active businesses in the UK during 2010, a decrease of 42,000
or 1.8% on 2009 levels. Blackburn with Darwen and the North West also experienced a decrease in
the number of active businesses, the North West falling by 7,850 or 3.3% on the previous year.
Blackburn with Darwen experienced a 4.0% decrease. This is higher than the regional and national
rates and the third highest decrease of the Pennine Lancashire.
Table2: Business births and deaths by district
District
Active
enterprises
2009
(A)
4,545
Active
enterprises
2010
(B)
4,365
Difference
(B-A)
%
Change
09/10
% of
Pennine
Lancashire
-180
-4.0%
25.3%
% of
Lancashire
14
Authority
8.7%
2,565
2,515
2,455
2,380
-110
-135
-4.3%
-5.4%
14.2%
13.8%
4.9%
4.8%
Pendle
Ribble Valley
2,795
2,925
2,685
2,840
-110
-85
-3.9%
-2.9%
15.5%
16.4%
5.4%
5.7%
Rossendale
2,645
2,560
-85
-3.2%
14.8%
5.1%
Pennine Lancashire
Lancashire
(14 Authorities)
17,990
52,045
17,285
49,960
-705
-2,085
-3.9%
-4.0%
100.0%
34.6%
100.0%
Blackburn with
Darwen
Burnley
Hyndburn
Source Office for National Statistics: Business Demography: Enterprise Births, Deaths and Survival
1 as a percentage of active enterprises
The broader 14-authority Lancashire area accounts for approximately 50,000 or 2.2% of active
enterprises in the UK. Pennine Lancashire accounts for 0.8%. Blackburn with Darwen has 4,365
active enterprises, a quarter of the Pennine Lancashire total and 8.7% of Lancashire 14 Authority
total. Hyndburn district had the smallest total, 2,380 active enterprises 13.8% of the Pennine
Lancashire total.
As with the national and regional trend, each of the six Pennine Lancashire authorities recorded
falls in the number of active enterprises. Active enterprises decreased by 4.0% in Blackburn with
Darwen. The highest decrease was registered in Hyndburn (5.4%).
Page 2 of 6
Business births and deaths
Figures for births and deaths of enterprises are derived by looking at the number of active
enterprises from one year to the next, for the UK, deaths exceeded births by 62,250 and for the
North West by 8,155.
Table 3: Business births and deaths
North West
United Kingdom
Active
enterprises
Births
(A)
228,245
2,300,355
22,705
235,145
%
change
on 2009
-5.1%
-0.4%
Birth
rate1
Deaths
(B)
9.9%
10.2%
30,860
297,395
%
change
on 2009
2.4%
7.4%
Death
rate1
Births
minus
Deaths
-8,155
-62,250
13.5%
12.9%
Source Office for National Statistics: Business Demography: Enterprise Births, Deaths and Survival
1 as a percentage of active enterprises


In 2010 there were 297,395 business deaths, a 7.4% increase on 2009 levels. The increase for
the North West was 2.4%.
In 2010 there were 235,145 business births nationally, a 0.4% decrease on 2009 levels.
Two measures can be calculated using the above data and these are the business birth and death
rates. Birth and death rates are calculated by dividing births and deaths by the number of active
enterprises.


Business deaths as a percentage of active enterprises give a death rate of 12.9% nationally
and 13.5% for the North West region.
Business births as a percentage of active enterprises give a birth rate of 10.2% nationally and
9.9% for the North West.
Blackburn with Darwen has the highest business birth rate (10.2%) as a percentage of active
businesses but also has the highest death rate (13.4%).
Table2: Business births and deaths by district
District
Active
enterprises
4,365
Births
Deaths
445
Birth
rate1
10.2%
585
Death
rate1
13.4%
Burnley
Hyndburn
2,455
2,380
220
210
9.0%
8.8%
315
285
12.8%
12.0%
Pendle
Ribble Valley
2,685
2,840
265
255
9.9%
9.0%
320
300
11.9%
10.6%
Rossendale
2,560
240
9.4%
300
11.7%
Pennine Lancashire
Lancashire (14 Authorities)
17285
49,960
1,635
4,495
9.5%
9.0%
2,105
6,455
12.2%
12.9%
Blackburn with Darwen
Source Office for National Statistics: Business Demography: Enterprise Births, Deaths and Survival
1 as a percentage of active enterprises






In 2010 there were 445 business births in Blackburn with Darwen, a rate of 10.2%, this is
much lower than 2009 levels. In 2009 there were 570 births, a rate of 12.5%.
In 2010 there were 585 business deaths in Blackburn with Darwen, a rate of 13.4%, this is
higher than the business death rate of 12.9% registered in 2009.
The business birth rate is lowest in Hyndburn (8.8%), Burnley and the Ribble Valley (9.0%)
and highest in Blackburn with Darwen (10.2%).
Burnley, Hyndburn, Ribble Valley and Rossendale have birth rates lower than both the
national (9.9%) and regional rate of 10.2%.
The business death rate is highest in Blackburn with Darwen (13.4%), lower than the
regional rate of 13.5% but higher than the national rate of 12.9% and higher than the
Pennine Lancashire and the Lancashire 14 district rates.
The Ribble Valley has the lowest business death rate of any Pennine Lancashire
authority.
Page 3 of 6
Percentage change in births and deaths
% change in Business Births
All Pennine Lancashire authorities experienced
a decrease in the number of business births
compared to the previous year. The highest
percentage decreases were registered in
Blackburn with Darwen (21.9%) and Hyndburn
(19.2%). Ribble Valley experienced the smallest
decrease in business births (3.8%).
0.0%
Blackburn
-5.0%
Burnley
Hyndburn
Ribble Valley Rossendale
-3.8%
-10.0%
-8.6%
-9.4%
-12.0%
-15.0%
-20.0%
-25.0%
Pendle
with Darwen
-19.2%
-21.9%
% change in Business Deaths
One Pennine Lancashire district (Burnley)
experienced an increase in the number of
business deaths. This increase (1.6%) however
was marginal.
20.0%
15.0%
10.0%
5.0%
All
other
Pennine
Lancashire
districts
experienced a decrease in business deaths, the
largest decrease in business deaths was in the
Ribble Valley, which had 60 fewer business
deaths in 2010 than in 2009.
1.6%
0.0%
0.0%
-5.0%
Blackburn
-10.0%
with Darwen
-0.8%
Burnley
Hyndburn
-1.7%
Pendle
Ribble Valley
Rossendale
-6.3%
-15.0%
-16.7%
-20.0%
Business births and deaths - Trend over time
The following graphs show the trend over time of business births and deaths in Blackburn with
Darwen.
Blackburn with Darwen
2007
585
590
570
445
455
2006
485
540
435
530
605
480
400
510
500
595
600
640
700
300
200
100
0
2004
2005
2008
2009
Births
2010
Deaths
From 2004 to 2008 business births exceeded business deaths, this trend has reversed over the last
two years. This follows national and regional trends. Other Pennine Lancashire authorities have
experienced the same trend.
Page 4 of 6
Survival Rates
A business that is active at any time in the year following the year of its birth is defined as having
survived 1 year, and so on for other years.
Table 3 Births and survival rates
Births
(2004)
1 Year
per cent
2 Year
per cent
3 Year
per cent
4 Year
per cent
5 Year
United Kingdom
274,855
95.9
79.8
64.7
53.9
44.4
North west
29,220
96.3
80.3
64.8
53.7
43.2
Source Office for National Statistics: Business Demography: Enterprise Births, Deaths and Survival
Table 3 and the district tables below emphasise the fact that even after only five years, more than
half of active enterprises no longer exist. At the national level and regional, only 46.8% of those born
in 2004 were still active five years later.
Blackburn with Darwen
Burnley
Year
Births
605
2005
530
2006
640
2007
540
2008
570
2009
Hyndburn
Yr 1
95.9
97.9
93.1
94.8
90.8
Yr 2
79.0
78.3
77.2
72.7
Yr 3
63.2
59.5
59.8
Yr 4
51.8
46.9
Yr 5
39.9
Year
2005
2006
2007
2008
2009
Pendle
Births
390
345
280
295
250
Yr 1
96.7
97.4
97.9
94.9
95.2
Yr 2
79.0
78.8
83.9
76.2
Year
Births
330
2005
285
2006
325
2007
270
2008
260
2009
Ribble Valley
Yr 1
96.4
94.8
92.0
94.8
93.5
Yr 2
80.0
83.0
76.3
74.1
Yr 3
65.2
67.7
56.9
Yr 4
54.5
52.8
Yr 5
43.0
Year Births
345
2005
275
2006
330
2007
260
2008
290
2009
Rossendale
Yr 1
98.0
95.3
92.7
94.3
93.1
Yr 2
82.9
78.6
77.9
74.4
Yr 3
67.2
63.0
60.6
Yr 4
57.7
50.4
Yr 5
46.7
Yr 1
98.8
95.5
97.1
93.9
91.8
Yr 2
79.7
82.4
85.3
81.7
Yr 3
66.7
67.1
62.4
Yr 4
53.9
50.8
Yr 5
42.3
Yr 1
96.1
96.6
95.6
95.4
93.6
Yr 2
81.6
82.6
80.3
77.5
Yr 3
68.9
66.5
61.0
Yr 4
55.0
51.2
Yr 5
44.1
Year
2005
2006
2007
2008
2009
Births
345
315
340
315
265
Year
2005
2006
2007
2008
2009
Births
330
320
315
280
265
Yr 3
61.0
58.3
62.5
Yr 4
50.3
47.5
Yr 5
38.7
The district tables above show the survival of newly born businesses in Blackburn with Darwen and
Pennine Lancashire districts, survival rates after year one is high with over nine out of ten newly born
businesses surviving. Four-fifths of all new business births survived till year two, six out of ten till year
three and only a half of all newly born businesses survived till year four.
The trend is such that by year five at the local authority level Blackburn with Darwen recorded a
business survival rate of 39.0%. All other authorities with the exception of Burnley had business
survival rates higher than 40% at year 5. The highest survival rate was 46.7% in Pendle, higher than
the regional and national average.
Further information
This briefing was prepared by: Saeed Patel
Research and Intelligence Officer
Corporate Research Joint Intelligence
3rd Floor Old Town Hall
saeed.patel@blackburn.gov.uk
01254 58(5106)
All Office for national Statistics data is reproduced under the terms of the Open Government
License (OGL) and UK Government Licensing Framework.
Source: Office for National Statistics licensed under the Open Government License v.1.0
Data: http://www.ons.gov.uk/ons/publications/all-releases.html?definition=tcm:77-21553
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