Our previous research shows that the failure rate for new businesses is 28.67%. However, the odds seem to be slightly worse for public relations and communication companies, with around 35% closing their doors within the first five years. Read on to discover the cities with the most and least successful new PR agencies. 

The Worst Cities to Open a PR Firm

Choosing the right location for your public relations agency can significantly influence your client acquisition, operational costs, and overall prospects for expansion. Business owners within the PR and communications industry need to think long and hard about where they want to establish their presence. Here are the cities where new PR agencies struggle to keep afloat.

1. Edinburgh

Edinburgh tops the list with the highest failure rate, with over half of the new agencies that have opened Scotland’s capital in the last 5 years having already closed (51.72%). Out of the 29 firms that opened, 15 have closed.

2. Reading

Reading takes the second spot, with 50% of new PR agencies that launched between 2018 and 2023 going into administration, liquidating, or dissolving.

3. Glasgow

Scotland’s largest city is the third-worst city to open a new PR agency, with a business mortality rate of 48.48%.

The Best Cities For New PR Firms

While certain cities may have witnessed more prosperous times, the outlook is not entirely bleak. Promising opportunities await new public relations and communication companies, particularly those aiming to establish a presence outside of London. Here are the top three cities where new PR agencies are flourishing.

1. Slough

Home to one of the largest industrial trading estates, Slough tops the list with the most successful new firms. Slough currently has a business success rate of 85.49%.

2. Cardiff

Cardiff takes the second spot at 81.82%. In the last five years, 22 agencies have opened in the city and only 4 have closed.

3. Northampton

Northampton ranks as the third-best city for new PR firms, with a business survival rate of 80.95%.

Key Takeaway

Our findings suggest that the success of your PR agency may be closely tied to its location. While the current failure rate within the initial five years stands at 35%, it does not necessarily dictate the fate of your company.

Methodology

We analysed data from Companies House to find the number of businesses registered under the SIC code 70210  for public relations and communication companies that were incorporated between January 2018 and December 2023 and compared that to the number that have gone into administration, liquidation, or are now dissolved.

To improve the accuracy of the data, cities with less than 22 new PR firms registered were excluded from the dataset.

Full Dataset

Rank	City	Number of PR Firms Closed	Number of PR Firms Opened	Percentage Closed
1	Slough	13	29	14.51%
2	Cardiff	4	22	18.18%
3	Northampton	8	42	19.05%
4	Peterborough	6	29	21%
5	Preston	8	31	25.81%
6	Ipswich	7	26	26.92%
7	Bournemouth	14	51	27.45%
8	Southampton	16	58	27.59%
9	Swansea	7	23	30.43%
10	Nottingham	8	26	30.77%
11	Warrington	8	26	30.77%
12	Luton	8	25	32%
13	Norwich	17	50	34.00%
14	Newcastle upon Tyne	18	50	36.00%
15	Aberdeen	13	36	36.11%
16	Birmingham	24	65	36.92%
17	Oxford	16	41	39.02%
18	Derby	15	38	39.47%
19	London	1054	2624	40.17%
20	Leeds	15	37	40.54%
21	Liverpool	13	31	41.94%
22	Wolverhampton	11	26	42.31%
23	Milton Keynes	21	47	44.68%
24	Bristol	21	46	45.65%
25	Manchester	36	76	47.37%
26	Glasgow	16	33	48.48%
27	Reading	11	22	50.00%
28	Edinburgh	15	29	51.72%

If you have any questions about our findings or methodology, get in touch with lance@avidpanda.com.