Using information from the Office of National Statistics and Transport for London, the site, which compiles neighbourhood information across major cities, revealed a negative correlation between public transport accessibility and two-year business survival rates.
PlaceILive has access to a range of databases which it uses to create the Life Quality Index for neighbourhoods in London. Derk Steemers, CMO of PlaceILive, said: “What we wanted to do, is put all the data and maps we have on our website, in a more tangible context so that entrepreneurs have a better understanding of how our tools can help them when choosing a location for their business.”
— Real Business (@Real_Business) April 17, 2015
The Public Transport Accessibility Source via Transport for London showed the strongest correlation.
While Silicon Roundabout has become the place to be for budding tech startups, for the most part, the research found that boroughs outside of central London had the best business prospects in terms of longevity. Bromley, Richmond, Sutton and Hillingdon were all rated to have the highest two year business survival rates of 76-80 per cent. The City was considered the worst place for entrepreneurs to set up their business at under 65 per cent.
Despite Westminster offering numerous options on its council’s homepage to provide guidance and support to upcoming businesses in the area, the research suggests it’s not one of the best prospects for startups looking to secure a future. The rate of 65-70 per cent was the second-lowest after the City.
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Westminster City council sends out a monthly business newsletter which includes discounts for businesses, advice for SMEs and startups, events and training opportunities along with commercial services available to businesses. There is a section dedicated to co-working options in the area – the council supported the development of three support spaces for startups and micro businesses, which includes Hub Westminster. Some 500 entrepreneurs work there and 80 per cent of those on startup businesses. PlaceILive’s study, however, indicates that the area is still more difficult to sustain a startup in than some of the less central alternatives.
Waltham Forest also ranked lower down on the range of options, with 65-70 per cent two year business survival rates. Of the more central options, Islington and Lambeth fared best with 76-80 per cent two year business survival rates.
Less accessible transport was more influential than other potential factors such as unemployment or salaries. PlaceILive also found that Londoners prefer to shop nearby when it becomes too much of a “hassle” to travel to a different retailer, giving local businesses an advantage over competitors elsewhere in the city.
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