London remains top for entrepreneurship, according to index
The latest Barclays Entrepreneurs Index has shown London continues to be the UK’s top city for entrepreneurship, with the number of high-growth businesses in the city increasing by 9 per cent year-on-year.
The annual index showed that the city accounts for 37 per cent of the UK’s high-growth companies and also has the highest overall number of private equity-backed companies at 204.
The index also showed a significant increase in expansion funding in London, with this rising to £742 million in 2016 from £332 million in the previous year. However, despite a 70 per cent increase in expansion funding in the city, there has been a decrease in the number of businesses receiving this funding.
The index also looked at mergers and acquisitions and new business activity across the UK. It found that there has been some of the strongest levels of entrepreneurial outputs since the index was first launched in 2011, with the number of new businesses up by 8 per cent from the previous year.
Nationally, the number of high-growth companies has dropped, while venture capital investment has reached its lowest level since 2011.
Barclays Wealth & Investments Regional Director in London Mark Smith commented: “In spite of a mixed national picture, it’s encouraging that London continues to lead the way for entrepreneurial activity in the UK. In an uncertain political and economic environment, the growth in expansion funding in London is positive for businesses moving from start-up to scale-up.”