Almost three-quarters (74%) of London start-ups are set up by entrepreneurs born in the city, according to a new survey by award-winning communications provider Plusnet.
The survey of 1,000 UK-based start-up business owners who have set up in the past 5 years, 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.
The data further suggests that younger business owners are more likely to start a business in their home town – with 75% of those aged 23-37-years old setting up at home compared to just 39% of those aged 53 and over.
Plusnet commented on the findings, “Using high speed business broadband, we help businesses up and down the country succeed, so we’re keen to understand the relationship between entrepreneurs and their local area. It’s great to find out that so many new business owners are setting up in their home towns and thriving.”
“Choosing to stay in your home town shows to be the key to success and this is especially true for younger owners who still have strong ties to friends and family in their local area.”