The University of Sussex’s business incubation network, Sussex Innovation, said 63 per cent of small business owners in London and the South East have considered leaving the capital over the next five years.This number rises to 78 per cent for technology startups, which has “called into question the sustainability” of East London’s Silicon Roundabout, “home to both UK and global entrepreneurs”. The survey found that the key factors pushing entrepreneurs out of London are rising property prices, with 78.5 per cent of owners citing this as a major problem. According to Sussex Innovation, average rental prices in areas such as Shoreditch and Clerkenwell were up five per cent in 2014 to £52.50 per sq ft and are predicted to rise by another nine per cent in 2015. Other SME concerns included difficulties accessing funding and investment, and securing top talent. The majority, 64.3 per cent, of those thinking about leaving the capital said they would consider relocating to the South East as an alternative. Read more about London:
- London tech investments at record high with 66 per cent growth what about – what about the UK?
- London firms more pessimistic about future prospects
- The best areas in London to launch a business
Share this story