Majority of city firms shut within five years

Companies in trouble urged to seek help to keep them going

Dundee has one of the poorest business survival rates in Scotland, with the majority of new companies closing their doors within four years.

New Government statistics show that of 335 new enterprises started in Dundee in 2011, only 160 made it to their fourth year.

And just 125 of these companies made it to their fifth birthday, a rate of 37.3%.

This is the second-lowest five year survival rate of any local authority area in Scotland, with only Clackmannanshire recording a slightly lower level of 37%. The Scottish average is 45.6%.

In Angus half of new companies are still active after five years. In Fife the rate is 45.4% and in Perth and Kinross 42.3%.

Dundee City Council’s convener of city development, Lynne Short, called on businesses experiencing problems in Dundee to seek help. She said: “The microeconomy in Dundee is really important.

“If business owners are having problems and thinking they could be the next statistic then they must pick up the phone to agencies that are there to assist, like Business Gateway or the Chamber of Commerce. I am also happy to help anyone.

“Small businesses help the circular economy – money given to small businesses is more likely to be kept in the local economy.

“I’d also call on people to show their support to small companies by attending some of the Small Business Saturday events this weekend.”

Alison Henderson, chief executive of Dundee and Angus Chamber of Commerce, said she was surprised at the high business failure rate in Dundee.

She said: “The chamber works a lot with businesses that are active and thriving. Certainly, among the 600 or so we represent there is very little business failure.

“There are always going to be businesses that fail – that’s a part of business life. But there are lots of interventions that exist in the city to support business in their survival.

“The chamber can help them market themselves and connect with other businesses.

“We’ve got a fully funded mentoring programme that links businesses with business people to share their expertise. It can help find problems and the solutions to it.”

The Office for National Statistics shows that between 2010 and 2016 there was a 14% increase in the number of active businesses in Dundee – rising from 3,300 to 3,765. Over the six years, Angus had an 11% increase, Perth and Kinross 8% and Fife had a 15% jump.

If business owners are having problems... then they must pick up the phone to the agencies there to assist. LYNNE SHORT, PICTURED