More than half the tech businesses in London have admitted that “survival” is the only plan over the next three months, according to a new survey.
The impact of the coronavirus outbreak has left 53 per cent of London-based tech firms just trying to survive in the short term, while 32 per cent of respondents to the Tech London Advocates survey said they expected “stagnation”.
The Covid-19 virus has forced the UK and many other countries around the world to be placed into lockdown.
The unprecedented situation has caused problems for the majority of businesses and London’s technology companies said cash flow and a fall in demand were the greatest challenges.
Almost half of the survey’s respondents said the pandemic would threaten the long-term viability of their business.
Despite this, three quarters of respondents agreed that tech companies have a more central role to play in the fight against Covid-19 through the development and use of AI, HealthTech and FinTech platforms.
Russ Shaw, Founder, Tech London Advocates, comments: “Tech businesses in the capital, and in particular early stage start-ups, are fearing for the worst, so it’s crucial that the industry collaborates and shares resources to sustain its global status in the long-term – that’s what the TLA Resource Hub is trying to achieve.
“The chancellor has already announced landmark legislation, but it’s important that support reaches tech firms quickly to sustain the fastest growing sector of the UK economy.
“However, the crisis also provides an opportunity for our innovative tech companies to step up and work with government, public services and society at large, to mitigate the impact of the virus.
“Whether HealthTech to support the NHS, enhancing workplace tools and network capabilities, or cybersecurity solutions that protect citizens against the threat of disinformation, the tech sector will need to be as creative and resilient as ever to safeguard itself and the broader digital economy.”