Businesses in the electricity and gas sector have highest survival rates, according to new study
Posted by: electime 17th September 2024
Despite recent news that tradespeople are struggling to meet high demand, new research reveals that electrician businesses have the highest survival rate of any industry, at 47 per cent.
A recent report by Screwfix revealed tradespeople are spending four months of the year working more than five days a week, with 75 per cent having work planned for the next six months.
However, research from Sopro has revealed that businesses in the electricity sector have the highest survival rate of any UK industry.
To help businesses in the electrical sector capitalise on this demand and stay ahead of the competition, the business experts have offered crucial tips for how firms can secure more customers and maximise profits.
Business survival rates by industry in the UK
Rank Industry Number of new enterprise births Number of new enterprise deaths Business survival rates
1 Electricity, gas, steam and air conditioning supply 3,625 1,915 47.17 per cent
2 Manufacture of beverages 2,265 1,325 41.50 per cent
3 Financial service activities (except insurance and pension funding) 9,310 5,600 39.85 per cent
4 Sewerage 645 415 35.66 per cent
5 Remediation activities and other waste management services. 1,105 715 35.29 per cent
6 Manufacture of chemicals and chemical products 2,365 1,555 34.25 per cent
7 Real estate activities 65,960 43,605 33.89 per cent
8 Manufacture of food products 7,330 4,875 33.49 per cent
9 Manufacture of other non-metallic mineral products 2,240 1,505 32.81 per cent
10 Construction of buildings 103,235 70,035 32.16 per cent
Electrical contractors are among the sector that has the best survival rate of any UK industry.
In the most recently documented five-year period (2017-2022), 3,625 new businesses were established in this sector, and only 1,915 closed down.
This gives the industry a survival rate of 47.17 per cent, reflecting the essential nature of the sector’s service.
Ryan Welmans, Co-Founder and CEO at Sopro, comments:
“When starting a business, it’s imperative to do your research. You’ll want to choose an industry that aligns with your areas of expertise, of course. But for a real chance of success, you’ll also need to consider market size, trends, growth rates, and competition – as well as how you’ll set yourself apart from the competition.
“Being proactive is crucial when building your business and securing clients or sales. Understanding your potential customer’s needs is key so you can offer a truly beneficial product or service. You can achieve this by utilising buyer personas, which ascertain key information about prospective customers, such as their professional background, challenges they face in their respective fields, their content preferences, and budget authority.
“With your buyer personas established, you can use lead generation and prospecting, whether in-house or via an external team, to identify new potential clients. Lead generation and prospecting use outbound one-to-one marketing activities, such as emails, phone calls, or social media messaging.
“This can be used to target businesses that have previously shown interest in your services or clients that fit your buyer personas, to really drive results and get your business in front of your target customers – and, importantly, ahead of your competition.”
