The failure rate of new businesses relative to total insolvencies is at its lowest level for more than a decade, according to new analysis from PwC. In 2024 startups accounted for 46% of total company insolvencies, the lowest proportion in a decade by a large margin – despite record levels of company incorporations over the period.
The average proportional percentage of startup insolvencies over the past decade was 60%, and 2024 marks the first year the rate has fallen below 50%.
While startup insolvencies, which in 2024 returned to a 2019 pre-pandemic range, (see Chart 2), non-startup insolvencies are still twice as high. Pressure has been felt particularly across the retail, hospitality, manufacturing and…
