Small businesses in Rhondda Cynon Taf are facing the most challenging conditions anywhere in the UK, according to new research that highlights significant pressures across parts of Wales and England.
The study, carried out by Rank Kings, analysed official data from the Office for National Statistics to identify where SMEs are struggling to survive — and where they are most likely to thrive.
Wales heavily represented among worst-performing areas
Rhondda Cynon Taf ranked worst overall, receiving a score of 10 out of 10 for business difficulty. The research shows a 39.8% drop in new business registrations between 2021 and 2023, alongside weak long-term survival rates.
Just 49.4% of businesses in the Valleys authority survive beyond three years, while only 22.5% make it past five years, placing it well below national averages.
The findings also reveal a broader pattern affecting Wales, with multiple Welsh local authorities appearing among the UK’s most challenging locations for business sustainability.
Coastal towns and urban areas also under pressure
Outside Wales, Great Yarmouth ranked second, driven by a sharp decline in new business openings and poor long-term survival. Only 34.9% of businesses in the Norfolk town survive beyond five years.
Newham placed third, with a notable rise in business closures. Between 2021 and 2023, business deaths in the London borough increased by 14.9%, while new openings fell by more than a quarter.
Bolton, Bromsgrove and Bury all ranked joint fourth, each scoring 9.0 out of 10, though the reasons varied. Bromsgrove recorded the lowest five-year survival rate in the study at just 13.4%, while Bolton and Bury both saw steep declines in new enterprises opening since 2021.
Nuneaton and Bedworth completed the top five most challenging areas, with fewer than one in three businesses surviving beyond five years.
UK areas where small businesses struggle the most
| Rank | Area | Active Enterprise Growth (2021–23) | 3-Year Survival | 5-Year Survival | Score |
|---|---|---|---|---|---|
| 1 | Rhondda Cynon Taf | -7.4% | 49.4% | 22.5% | 10.0 |
| 2 | Great Yarmouth | -6.5% | 54.0% | 34.9% | 9.3 |
| 3 | Newham | -2.9% | 53.9% | 35.9% | 9.1 |
| =4 | Bolton | -8.2% | 46.6% | 27.3% | 9.0 |
| =4 | Bromsgrove | -42.0% | 18.0% | 13.4% | 9.0 |
| =4 | Bury | -5.3% | 50.7% | 27.4% | 9.0 |
| 5 | Nuneaton and Bedworth | -5.0% | 48.1% | 32.1% | 8.9 |
Yorkshire stands out as a bright spot
At the other end of the spectrum, Craven in Yorkshire was identified as the best place in the UK to start a small business. The area recorded a 32.6% increase in new enterprises since 2021, with more than two-thirds of businesses surviving beyond three years.
Expert: businesses must adapt to survive
Commenting on the findings, John Almond, Director of Rank Kings, said the results show stark regional differences in how well local economies support small firms.
“The findings of this study ultimately indicates that some local authorities are better equipped to not just see new businesses open, but keep them open sustainably, than others,” he said. “It’s interesting that Wales seems to be particularly struggling, with seven areas in the top 50 worst areas being located in Wales.”
He added that adaptability is increasingly critical for survival.
“Businesses in this ranking must adapt and engage with customers in traditional and non-traditional ways, for example, ensuring a presence on social media, whether that’s through fun TikTok videos or engaging in local groups on Facebook.”
Implications for South Wales
For Cardiff and the wider South Wales region, the findings underline the importance of targeted local support, access to digital tools and stronger customer engagement strategies to help small businesses weather ongoing economic pressures.
As high streets continue to evolve, the study suggests that location, resilience and the ability to reach customers online are becoming decisive factors in whether small businesses survive — or disappear — in today’s economy.