Data reveals half of businesses set up in Fife in 2014 failed to last five years

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 1,170 businesses in Fife were set up in 2014 – but after three years 725 were still active, and by 2019 just 495 remained.

That equates to a five-year survival rate of 42%.

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."

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

Last year, 1,530 new businesses were launched in Fife – 220 more than those which ceased to trade in the same year.

At last count there were 10,745 active companies in the area.

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

Six neighours in Fife street share lottery windfallIn Pictures: Harry Ewing – from foundry worker to the House of Lords

In Fife 1,095 businesses were still active one year on from launch, a survival rate of 89% which is the same as the UK rate.

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 over the pandemic including a Bounce Back Loan Scheme, the opportunity to defer VAT payments and business rates holidays.

The Coronavirus Job Retention Scheme has also been extended until March.

Thank you for reading this article on our free-to-read website. We're more reliant on your support than ever as the shift in consumer habits brought about by Coronavirus impacts our advertisers.

Please consider purchasing a subscription to our print newspaper to help fund our trusted, fact-checked journalism.

https://www.localsubsplus.co.uk/nord/dm/FFP/V