Data reveals high casualty rate among Falkirk businesses

The Federation of Small Businesses says firms were "already up against it" before the Covid-19 pandemic - but they are now reporting record falls in revenue with many posed to cut staff numbers.

Office for National Statistics data shows 520 businesses in Falkirk were set up in 2014 – but after three years 325 were still active, and by 2019 just 225 remained.

That equates to a five-year survival rate of 43%.

In Scotland, West Dunbartonshire had the lowest rate, 32%, while the Shetland Islands had the highest at 60%.

Across the UK, the five-year survival rate to 2019 was 43%.

Survival rates for businesses in clothes manufacturing, food services and food services such as restaurants were among the lowest nationally.

In the FSB's Small Business Index report, Mike Cherry, national chairman, said small firms were already struggling with political uncertainty and a surge in operating costs before the pandemic.

He said Government support, such as the Eat Out to Help Out scheme, had led to a “summer bounce”, but that many were now struggling.

He added: “Firms still report a record drop in revenues, while the number planning to let staff go is at an all-time high."

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"Exporters– still without any significant clarity around what the future holds for trade with Europe – say international sales have plummeted."

Last year, 500 new businesses were launched in Falkirk – 50 more than those which ceased to trade in the same year.

At last count there were 4,150 active companies in the area.

The ONS figures also reveal one-year survival rates for companies set up in 2018.

In Falkirk 465 businesses were still active one year on from launch, a survival rate of 94% which is higher than the UK rate of 89%.

Due to coronavirus restrictions imposed from March, many industries in the UK have been hit by enforced closures or lower takings.

The Government has provided a range of support for businesses including a Bounce Back Loan Scheme, the opportunity to defer VAT payments and business rates holidays.

The Coronavirus Job Retention Scheme has been extended until March.

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