London weighs in as the top location in the UK to start a business, generating £117bn, 12 per cent, in annual revenue, but funding challenges persist.
YFM’s research, which studied 1.1m entrepreneurial SMEs in the UK, and the Centre for Economics and Business Research (Cebr), revealed London is home to 8,774 entrepreneurial businesses — more than any other region in the UK.
“London is a hive of activity for professional capital,” Jamie Roberts, partner and head of Investments South, YFM Equity Partners, said.
But while London comes in ahead of the game, with 38 per cent of London entrepreneurs saying they would like to act on their creativity, the capital’s entrepreneurs aren’t immune to funding challenges.
The research found that some 43 per cent of London entrepreneurs are using their personal savings to fund their company, compared to a national 38 per cent.
“There’s a very well-established private equity industry in the city and London also attracts international investors as a global financial centre,” Roberts said.
While making contacts can be hard, 32 per cent say they have difficulty finding the “right” investors.
“There is a broad range of capital and networks here to help entrepreneurs scale up and the expertise to help them realise their ambitions, but for many companies, actually finding the right investors can still be hard,” Roberts added.