A business marketplace CEO says that with nearly six in ten start-ups failing within three years, where you choose to launch matters as much as how.
Every January brings a fresh wave of entrepreneurial ambition. For many people, the start of a new year marks the point at which a long-considered business idea begins to feel like an achievable plan. The statistics, however, demand a degree of realism: close to 60 percent of UK start-ups fail within three years, and around one in five closes within the first twelve months alone.
The question facing aspiring business owners is not simply whether to start, but where. Andrew Markou, co-owner and CEO of BusinessesForSale.com, a global marketplace operating across more than 130 countries, argues that sector selection is among the most consequential decisions an entrepreneur can make – and that certain industries offer structural advantages that meaningfully improve the odds of survival.
“There are specific industries that weather economic storms more successfully than others,” Markou said. “These sectors share common attributes: they provide essential services, generate recurring revenue, or serve markets with consistent demand regardless of economic conditions.”
Here are the ten UK sectors he identifies as offering the lowest failure rates, and the reasons behind their resilience.
1. Real Estate
Property investment, development, advisory, and management collectively generated nearly £270 billion in gross value added in 2022 – the highest contribution of any sector to the UK economy. High capital requirements make entry challenging, but those who navigate that barrier operate in a market where demand is structurally persistent.
“Property will always be in demand,” Markou said, pointing to sustained rental yields and long-term capital appreciation potential in major cities including London, Manchester, and Glasgow as particular draws for new entrants.
2. Transport
Road freight, courier services, removals, and logistics form the backbone of a sector forecast to grow at a compound annual rate of nearly three percent through to 2027. Start-up costs are substantial, but the business is scalable, and digital freight platforms have lowered some of the traditional barriers to building a client base from scratch.
“Transport is a fundamental industry that keeps the economy moving,” Markou said. Demand tends to peak between April and December, providing a reliable seasonal rhythm for operators managing capacity and cash flow.
3. Funeral Services
Demand for funeral services is unaffected by economic cycles in a way that few other sectors can claim. The UK’s ageing population reinforces long-term structural demand, and while the market is competitive – dominated at scale by a small number of large operators – independent funeral directors continue to build sustainable businesses through local reputation and personalised service.
“Funeral services will always be needed,” Markou said. “The key is offering a supportive, affordable, and respectful service – one that creates genuine loyalty and word-of-mouth referrals in the community.”
4. Nursing and Care Services
Healthcare has consistently ranked among the most stable sectors in the UK economy. Care home occupancy rates rose five percent in 2022, and demand for at-home care services has grown alongside it, driven by both an ageing population and a broader preference for community-based support over institutional care.
“Whether you’re starting from scratch or acquiring an existing operation, healthcare offers strong long-term prospects,” Markou said. The variety of entry points – from small domiciliary care operations to residential facilities – makes it accessible to entrepreneurs at different capital levels.
5. Agriculture
The agricultural sector contributed £11.2 billion to the UK economy in 2021 and employs close to half a million people. Opportunities extend well beyond conventional farming into consultancy, nurseries, specialist production, and emerging areas including biofuels. Analysis of UK farm performance shows that 21 percent recorded average annual profits of £75,000 or more, with dairy and poultry among the most consistently profitable subsectors.
“Food production will always be necessary, making this sector recession-resistant,” Markou said, while acknowledging that the challenges of entry – capital, land, regulatory complexity – are significant and should not be underestimated.
6. Launderettes
A well-positioned launderette generates consistent, predictable cash flow from a service that demand for does not disappear during downturns. Labour costs are low relative to most retail operations, management is straightforward, and additional revenue streams – detergent sales, vending, coin exchange – are easily layered on.
“The success rate is far higher than most industries,” Markou said. “It’s one of the lowest-risk businesses for entrepreneurs.” The primary variables affecting profitability are location, utility costs, and the reliability of machinery maintenance.
7. Payment Processing
Every business that accepts card payments requires processing infrastructure, and the continued expansion of e-commerce has widened that market considerably. The UK digital payment processing sector was forecast to reach £8.9 billion, having grown at a compound annual rate of 7.6 percent.
“In our increasingly digital economy, payment processing services will always be in demand,” Markou said. Growing merger and acquisition activity in the sector also creates potential exit pathways for entrepreneurs who build meaningful scale.
8. Insurance Services
The UK insurance market is both large and mature. In 2022, 69 percent of UK adults held contents insurance and 68 percent held motor insurance. The general insurance market grew by 1.6 percent over five years and was projected to reach £75.6 billion by the end of 2023.
“Insurance products address fundamental needs around cars, health, homes, and work,” Markou said. Profitability depends on disciplined pricing and claims management, but the consistency of underlying demand gives the sector a stability that more discretionary categories lack.
9. IT Support
Business reliance on technology has created a sustained and growing demand for IT support and managed services. The UK IT services market is projected to expand at more than ten percent annually through to 2028, reaching a forecast value of £96.33 billion, accelerated by widespread adoption of cloud-based software across sectors of all sizes.
“Businesses increasingly rely on technology, which means IT support will remain in high demand,” Markou said. The sector rewards technical expertise and offers relatively low barriers to entry for those with the relevant skills.
10. Food
The UK food industry is the country’s largest manufacturing sector, with output valued at £33 billion and business investment reaching £4.3 billion. Despite the cost pressures that have characterised recent years, the fundamental proposition – that food is a non-discretionary purchase – underpins the sector’s long-term durability.
“The right product with defined markets and effective marketing strategies can bring profitable returns,” Markou said. “The food and drink industry has commercial maturity and multiple opportunities for entrepreneurs willing to find their niche.”
The Limits of Sector Selection
Markou is consistent in framing sector choice as an advantage rather than a guarantee. The structural qualities that make these industries resilient reduce risk – they do not eliminate it.
“Even in the most stable sectors, poor management and ineffective marketing can lead to failure,” he said. “Choose wisely, but also execute well.” A thorough understanding of the target market, a realistic business plan, and the flexibility to adapt as conditions change are prerequisites for success regardless of which sector an entrepreneur enters.