London: One Of The World’s Best Cities For Startups?

Startups are still leading the entrepreneurial way as the digital era continues to make innovation more accessible. You don’t necessarily need a huge budget to come up with the next big thing – with good ideas and a brilliant team, venture capitalists will find you.

But no matter how digitised our world becomes, successful startups always need to expand and physical business locations are still incredibly important. London in particular is a hotly debated location. On the one hand, it has a high cost of living and rapidly diminishing office space. However, at the same time it has a reputation as one of the world’s best startup hubs.

We explore why London could still be the right business location for startups.

Do startups have room to breathe in the office space crush?

The demand for office space in London is huge, pushing office prices up to an all-time high. London is now one of the most expensive cities in the world for office space. This does not bode well for startups and small businesses who may find it difficult to justify such significant expenses.

But all’s not lost. The demand for office space in London alongside the increasing need for flexibility due to remote working growth has lead to a trend of coworking options.

In the last few years there has been a notable rise in flexible office space and coworking options in the capital.

Since they started out in 2007 serviced office providers i2Office have expanded to 15 London locations, office giants Regus have created 89 and the US born WeWork have opened 8 spaces and counting.

This influx of flexible spaces may work to combat the growing expenses of office space in London and allow startups to have more of a chance in the capital.

There’s a lot of talent already based in London

From the so-called ‘silicon roundabout’ to the prestigious offices of Mayfair, it’s easy to see why London is saturated with talent.

Startups and small businesses need to stand out from the crowd, have an excellent business plan, make the most of their resources and have a brilliant idea to succeed in the city.

Startups can give themselves an advantage over the competition through knowing what financial traps to avoid, as said by SMB and contractor accountants 3 Wise Bears.

Startups can also fish in a bigger pool of employees if they opt to let them work remotely. The startup may be based in London, however it can draw upon talent from all over the world which can help get the best and most cost-efficient employees.

Startups in London are in good company

Startups that were sparked in London include YPlan, Wonga and GoCardless. London’s diverse cultural events make the city a hotbed for inspiration and interesting ideas. Around 484,000 new businesses were started in 2014.

Though the percentage of women in tech startups across the globe is incredibly low, London boasts the highest percentage in Europe. London is the female tech entrepreneur capital of Europe at 9%.

London is also home to a huge concentration of Europe’s higher education giving growing companies access to a pool of skilled graduates.