Environments for business deregistrations in the United Kingdom, 1987–1990

In order to understand the reasons for marked spatial variations in business failure rates in the United Kingdom over the period 1987 to 1990 a macro-level interpretation of organizational survival was utilized. We were able to delineate empirically the environment as a set of factors that lead to the deregistration of businesses registered for Value Added Tax (VAT) purposes. Eleven factors presumed to be statistically associated with spatial variations in business failure were identified. Seven of the identified factors were statistically significantly associated with business deregistration rates. This led to the need for the development of a classification of ‘ business deregistration environments’. The process of classification and grouping allowed each of the sixty-five sub-areas of the United Kingdom to be allocated to seven contrasting and mutually-exclusive groups. Moreover, the seven groups are decidedly non-random in terms of relative deregistration rates. In conclusion, we believe this type of analysis provides; a worthwhile sampling frame for a more targeted and environmentally controlled micro-level study of the role played by a further range of factors influencing business failure.