On-line sales platform eBay UK has recently released interesting research suggesting that the success of a business start-up could in part be influenced by its geographical location.

The research found that business start-ups located in London are the least likely to survive, whilst those based in the Shetland Islands appear to have the best chance of success, reports website startups.co.uk.

The researchers analysed data from the Office for National Statistics, and revealed that for new businesses in London, only 38.6% managed to last more than five years. This is significantly lower than in other areas of the UK, with the South West recording 45%, the East of England 44% and Scotland 42%.

Breaking the figures down further to look at local authority areas, the research found that Shetland Islands council had the greatest survival rate for business start-ups, with 56% exceeding the five year mark. In comparison, the lowest business survival rate was apparently to be found in Redbridge in North East London, where only 36% of start-ups were still in business after five years.

One possible suggestion put forward by researchers to explain these perhaps surprising results is that more distant locations may provide new businesses with a certain amount of protection from the “economic turbulence” experienced in bigger cities, the startups.co.uk website reports.

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