London’s Tech City revealed as top hub for start-ups with over 15,000 new businesses a year
17 of top 20 start-up locations based in London
London’s Tech City has been revealed as the major hotspot for UK start-ups as new findings published by accounting firm UHY Hacker Young show that 15,720 businesses launched in the tech postcode over the last year.
Outstripping all other areas, the significant volume of new businesses is said to relate to its growing reputation as a central point for UK technology, following the success of fast growth Tech City businesses such as Michael Acton Smith’s Mind Candy and global taxi app business Hailo.
The government’s backing and promotion of Tech City as a launch-pad for new businesses was also provided as a reason for the large number of new businesses in the zone.
The nationwide research found that of the top 20 locations for start-ups, only three were situated outside of London. Warrington the highest scoring at number 14, saw 1,510 new start-ups launch, just a tenth of the new businesses started in Tech City.
London areas with high numbers of start-ups were those home to clusters of expertise in certain industries as well as those that had received major regeneration and new infrastructure.
St James’s, Canary Wharf, Borough and Bermondsey and Bishopsgate in particular were found to have attracted thousands of start-ups during the last year.
UHY Hacker Young partner Colin Jones commented on Tech City’s popularity:
“The area around Old Street has been an emerging business destination for some time thanks to relatively cheap rents, but since the internet and app industries started to colonise the area, new business creation has really taken off.”
He added: “The example of London’s business creation hotspots shows how influential clusters of expertise can be in attracting more businesses to set up in an area. Identifying the industries and sectors that a particular area should target for growth is clearly bearing fruit.”