By Lizzie Benton, Datify
London has often be seen as a costly location for start-up businesses, with office overheads being excessive and the increase in transport fees for commuting employees, it can be a destination that leaves the finances much to be desired.
But whilst many are happy to invest in a London address, there have been huge disparities in the internet connection that is offered in the most popular business areas of the city, meaning those who look to invest end up elsewhere due to the lack of connectivity available.
The current broadband speeds in Westminster, Tower Hamlets and Southwark are below average for the UK, and it has seen a huge demand from the UK’s Tech industry who are currently being held back by the lack of innovation within the area.
However it has been unveiled by London Mayor Boris Johnson that the city is to be part of a new broadband initiative to increase broadband speeds and produce an Internet Connectivity Map, so that businesses are able to find office spaces that have the best connection.
Many are seeing this announcement as a step to enabling all businesses an opportunity to move to the city and make the most of what the city has to offer.
Within the UK economy itself, the digital industry is the fastest growing sector with an estimated 1.46 million people currently employed by digital companies, but very few of these are London based due to the issues surrounding connectivity.
As the trend of office sharing and ‘hot desking’ continues, London may now see a boom in young start-ups who need a London hub to help cement their business as global rather than local.
This announcement could not have come at a better time for the UK economy, who need as much investment in the pound as possible to ensure the euro does not affect business.
Paul Fletcher from corporate relocation company F&N Worldwide, commented that, “We had seen a decline in businesses wanting to move to the capital because of the economic uncertainty and the low growth, but there now seems to be a renewed interest in newly developed London areas because of the new initiative.”
Many small businesses look to move to cities as they represent profitable growth, and the glamour of such an address can instantly attract bigger and better business.
Thanks to office sharing facilities that now dominate the buildings of London’s skyline, companies don’t have move their business completely, as they can establish a ‘London Office’ without any people physically in the building. An alternative London office not only gives small businesses two addresses, appearing larger in practice than they really are, but it can also offer the opportunity to meet with clients in a city environment making it accessible for both parties.
Where once London was only seen for the elite, small businesses can now utilise the city to succeed.