THE Forest of Dean is one of the South West’s better-performing areas for local business survival, according to new research.

A study, conducted by insurance experts at Alan Boswell Group, looked at official ONS Business Demography data across UK local authority areas.

Each area was ranked using a risk score based on three factors: the business closure rate in 2024, the five-year survival rate for businesses born in 2019, and the balance between new businesses opening and existing businesses closing.

The Forest was found to have the sixth-lowest overall closure risk in the region and ranks 319th in the UK. It recorded a risk score of 34.6 out of 10 and had 270 business closures from 3,485 active businesses in 2024, giving it a closure rate of 7.7 per cent. This is below the UK average of 9.8 per cent.

Heath Alexander-Bew, Personal Lines Director at Alan Boswell Group, said: “Forest of Dean’s figures point to a more resilient local business picture than we are seeing in some other parts of the South West. The district’s closure rate sits below the UK average, and more businesses opened than closed in 2024.

“What is also encouraging is that Forest of Dean’s five-year survival rate is stronger than the UK average. That suggests many local businesses are not only getting started, but are managing to keep trading through the more difficult early years.

“That does not mean local businesses are free from pressure. Higher costs, quieter trading periods, late payments, staffing challenges and unpredictable customer demand can still make it difficult for owners to plan ahead, especially for smaller businesses with tighter cash flow.

“For business owners, this is a reminder to keep checking the basics before problems build up. Cash flow, supplier terms, stock, equipment, premises and insurance cover should all be reviewed regularly, especially if the business has changed. A business may have taken on more stock, moved premises, added staff or started selling online, and if the protection in place has not kept up, an already difficult situation can become much harder to recover from.”

The district also saw more businesses open than close in 2024, recording 285 business openings, which outnumbered closures by 15. This gives the district a positive net opening and closure balance of 0.4 per cent.

Forest of Dean’s five-year business survival rate also sits above the UK average. Of the 295 businesses born in Forest of Dean in 2019, 145 were still active five years later, giving the district a five-year survival rate of 49.2 per cent. Across the UK, the five-year survival rate was 38.4 per cent.

Forest of Dean also sits well outside the South West’s main business closure hotspots. Its closure rate is lower than areas such as North Somerset, Plymouth, Swindon, Bristol, Torbay, Bournemouth, Christchurch and Poole, and Cornwall.