London is now home to 1 million businesses » SMEInsider

London is now home to 1 million businesses

The British capital reached the record-high figure this week in a year during which 150,564 new businesses were formed and 89,682 companies dissolved inside the M25, according to Inform Direct, a company secretarial software provider.

The boroughs of Hackney and Camden came out on top with 14,475 and 13,454 new businesses registered in the areas respectively.

Henry Catchpole, CEO of Inform Direct, said: “I am not surprised to see Hackney at the top when it comes to entrepreneurialism. The makeup of this borough’s economy has changed significantly over the past decade with old factories becoming workspaces for a new boom in technology, media and telecommunications.”

One driver of new businesses has been London’s FinTech scene, which the Mayor of London described as ‘flourishing’ and that the city was a “hotbed of talented young and ambitious people buzzing with exciting ideas who are setting up new companies in their droves”. Early on in the year, the Mayor started a £85m fund to support startups across the capital.

Catchpole described the recent explosion in startup activity as ‘exceptional’.

The highlighted three factors that were conducive to fuelling growth. The first is the expediency with which one can start a new business – it can take just a few hours and a nominal fee.

Second, is the increasing amount of people who eschew the office work environment and quite comfortably run a whole business from the comfort of their own home with just a website.

The final factor is the increasing ubiquity of crowdfunding websites, which make it easier for companies to raise the necessary funds to run a business.