London is the hub for creating new businesses

by Susie Hughes at 10:27 14/10/14 (News on Business)

London outdoes the rest of the UK’s top 150 towns and cities for business generation, creating 20 times more additional new businesses per capita than the rest of the UK, according to research by accountants UHY Hacker Young.

Latest figures show a net total of 16 additional businesses per 10,000 population was created in London, compared to just 0.8 nationally. Slough, home of Ricky Gervais’ cult sit-com ‘The Office’, was a close second, creating a substantial 15.5 additional businesses per 10,000 population. London’s high level of business generation is largely due to its reputation as an economic powerhouse, helping to attract both international businesses and start-ups to the City and its fringes such as Bankside, Shoreditch and 'Silicon Roundabout', in the East of the City area. Colin Jones, Partner at UHY Hacker Young said: “As the recession eases, more businesses are turning towards expansion, and many international companies are looking to London to access the UK and European markets. “Continual regeneration is also leading to increased business creation. Revived areas such as the ‘Silicon Roundabout’ and Shoreditch, are now housing the headquarters of tech giants such as Facebook and Amazon, as well as a growing variety of successful tech start-ups. “Businesses in the ‘Silicon Roundabout’ are benefiting from close proximity to the City and the West End whilst taking advantage of the lower office rents available in EC1. The area is quickly becoming a bustling centre of media and creative start-ups as well as technology companies. “London is also attracting a new wave of financial services companies, ranging from specialist high frequency traders, financial technology companies and hedge funds and the supply chain of small businesses that serve them.” Slough and Milton Keynes Second on the list, Slough’s business community expanded by 15.5 new businesses per 10,000 population. The area’s success can be attributed to its successful trading estate, one of the oldest in the UK. The town is the UK home to major telecoms, automotive and technology companies such as Ferrari, O2, McAfee and Honda. Advertisement Colin Jones said: “In contrast with the failings of the fictional Wrenham Hogg in ‘The Office’, Slough is dynamic - outdoing most of the country in terms of new business creation. Situated on the M4 corridor with its concentration of high-technology companies, and only a short distance from central London and Heathrow Airport, the area provides great transport links which is a big draw for businesses.” Milton Keynes placed third in the Top 150, creating 10.5 additional new businesses per 10,000 population. Recently named a banking job hot spot by the Office of National Statistics, Milton Keynes has the largest number of international businesses in the UK, aside from London, and is popular with businesses for office re-locations due to its proximity to London and cheaper property prices. Colin said: “What all of the top five towns and seven of the Top 10 have in common is their proximity to London. There is still a huge divide between North and South in terms of business generation. “Since the recession, the Government has heaped substantial investment into helping the creation of small businesses. However, local councils in the North, West and Wales may need to further step up their business generation initiatives if they’re to catch up with the South and boost the local economy.” The lowest scoring town was Blackpool, having lost a net total of 13.4 businesses per 10,000 population. Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2014

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