London’s Tech City has topped the chart for new business generation in the UK, launching over 15,000 startups in the last year alone.
Accountancy firm UHY Hacker Young, which carried out the research, largely attributes the growth to the area’s reputation as the UK’s technology hub, as well as regeneration and investment in new infrastructure.
The results show that between March 2012 and March 2013, 15,720 new businesses were set up in the EC1V Silicon Roundabout area.
5,190 startup businesses were launched in the same period across the SE1 postcode – Borough and Bermondsey – the next most prolific area in the UK for new business generation.
Colin Jones, Partner at UHY Hacker Young, said, “Clusters of expertise can be highly effective in driving new business creation. 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.”
Other popular areas in the capital were Bishopsgate (E1) and Canary Wharf (E14) which between them attracted 4,900 new businesses and St. James’s (SW1Y), which attracted 1,830 startups.
“It’s also interesting to see how influential the City and finance still are in driving new business creation, despite the battering they took during the financial crisis. St. James’s is no longer the preserve of gentlemen’s clubs, it is now the backyard of the international super-rich and many former City bankers are setting up shop in the area to service that community,” commented Jones.
Just three of the 20 areas listed by the firm are outside of London: Warrington (WA1) came fourteenth with 1,510; Brighton (BN1) sixteenth with 1,450; and Cheshire (SK9) nineteenth with 1,360.
ITProPortal in June launched a new hub dedicated entirely to Startups, with London’s Tech City featuring right at the heart of the action.
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