Three in four London start-ups are set up by entrepreneurs born in the city
A new survey has revealed that nearly three-quarters (74%) of London start-ups are founded by entrepreneurs born in the city.
The study by communications provider Plusnet spoke to 1,000 UK-based start-up business owners who have set up in the past 5 years and explored the reasons why many Londoners base their company in their home city.
67% of Londoners who decided to set up at home did so because of existing connections in the city. 55% also said a familiarity with the area influenced their decision to do so.
Other popular reasons included:
- The area/city is well suited for businesses in their industry: 42%
- This area/city is their home: 40%
- It has a great support system: 18%
The city is also inspiring business-owners to success. 78% of London-based start-ups said that the city had a positive impact on their decision to go into business.
UK-wide data revealed that businesses that begin in an owner’s home town are more likely to generate a higher turnover.
86% of UK start-up owners with a company turnover of over £400,000 said their business is based in their home town. Only 51% of respondents with a company turnover of £50,000 or under said the same.