15 April, 2019
Analytical company Marketing Logic has prepared a report on the lifetime of various types of business in Russia. Longest companies live in the Siberian Federal district, the least – in the North Caucasus Federal district. Almost 35% of Russian startups do not live up to 1 year. Most of the companies – 43.5% exist from 1 to 2 years, almost 16% work from 2 to 3 years, from 3 to 5 years "live" 5% of companies. The share of business that outgrows the 5-year mark is less than 1%.
With the help of Big Data, open data of the Federal tax service, historical data for the last 6 years, as well as GEODATA, experts analyzed information about the average life of various types of business in the Russian regions by categories: cafes, grooming, banks and financial services, car services, consumer services, telecommunications services (Internet). The basis was the time of the actual work of a company, regardless of the form of ownership. The data differ from the average life expectancy of legal entities according to the Federal tax service, as quite often, de facto services and enterprises are opened later than the date of registration, and closed before the date of formal liquidation.
«We spend a lot of time to help our clients develop their business, make it more successful and profitable, which certainly affects its "lifespan". And as in the process we compare historical data on a variety of industries, we have accumulated statistics for a long period, which we decided to share, dividing into popular activities and comparing by region.
The investment climate in the region, the attitude to entrepreneurs and business from the state – all this is of great importance for the survival and development of business. In general, we see an increase in the life expectancy of the business, so for the year from 2017 to 2018, the average duration increased by 20%»says Dmitry Galkin, managing partner of Marketing Logic and expert in the field of Big Data and geomarketing
In General, the Siberian Federal district (1 year and 10 months) is the leader in terms of life without division into business areas, the next by a gap in the month is the Ural Federal district. With the result of 1 year and 8 months is Volga Federal district. In the Central Federal district business lives on average 1 year and 7 months, in the North-Western Federal district is 1 year and 4 months, in Far Eastern and Southern districts is 1 year and 2 months, in the North Caucasus is 1 year.
The TOP 10 Russian regions in terms of life expectancy of business include: Tomsk region (more than 3 years), Samara (2 years 11 months), Kirov (2 years 7 months), Vladimir (2.5 years), Bryansk (2 years 5 months), the Republic of Khakassia (2 years 3 months), Udmurt Republic and Ivanovo region (2 years 2 months), Saratov and Kaliningrad region (1 year 11 months).
The least "lives" business in the Magadan region (less than 8 months), the Republic of Mari El (9 months), Krasnoyarsk region (less than 10 months), Volgograd (10 months), Rostov (11 months), Pskov (less than 12 months) regions, the Republic of Komi, Stavropol region, Orenburg region (1 year), the Republic of Bashkortostan (1 year 1 month).
Car service feels best in the Altai region, Ivanovo and Kirov regions. The least lifespan of this business is the Magadan region, Moscow and Krasnoyarsk region.
Banks and financial institutions "live" the longest in the Kirov region, the Republic of Mordovia and the Bryansk region, least of all live they in the Ulyanovsk region, Altai Krai, Tambov region.
Business connected with domestic services is the most stable in the Voronezh, Omsk, Novosibirsk regions, and the least is in the TRANS-Baikal territory, Amur and Kaluga regions.
Internet service providers work the longest in the Kirov, Omsk and Bryansk regions. Least of all work they in the republics of Mari El, Komi, Volgograd region.
Cafes are less often closed in the Kamchatka Territory, the Republic of Khakassia, the Vladimir Region. Catering establishments in the Orenburg and Magadan regions, the Republic of Mordovia, are closed before the rest.
Business related to food feels best in the Republic of Khakassia, Bryansk region and the Republic of Tatarstan. The least successful such business is in the Magadan, Tambov and Amur regions.
Department stores work the longest in the Kirov, Bryansk, Novosibirsk regions. The shortest duration of work is in the Magadan region, the Komi and Mari El republics.
"Drinks and tobacco" Business is the most viable in the Tomsk region, Udmurt Republic, Nizhny Novgorod region. Such business in Krasnoyarsk Krai, Magadan and Rostov regions is the fastest to "collapse".
Business related to the care of appearance, feels most stable in the Udmurt Republic, Bryansk and Ivanovo regions, and previously closed in the Tambov region, the Kamchatka territory and the Republic of Mari El.
The entertainment business pleases the residents of Samara, Vladimir, Tomsk regions the longest. The shortest "century" of similar business areas is in the Republic of Mari El, Magadan and Volgograd regions.