East London praised for start-up growth — but can it continue?
East London has been crowned the most entrepreneurial region in England as it tops of the charts with the fastest growth of new start-ups.
Fresh research by the East London Growth Group has revealed half of East London’s boroughs are in the top 10 per cent for the growth rate of new small and medium sized enterprises (SMEs) across England since 2010.
This means over 60,000 new SMEs have been created in East London and the Thames Estuary over the past decade and a half, a total of 62 per cent more SMEs in the region.
The London Borough of Newham, which came in first place, saw a 175 per cent surge in SME growth, with Barking & Dagenham following in third at 153 per cent. The national average is 32 per cent.
“People who live in the borough [Newham] – many with their roots in other parts of the world – respond to the challenges they face with energy, imagination and determination,” The Rt Hon Sir Stephen Timms, MP for East Ham, said.
“This research finding provides good grounds for optimism about the future,” he added.
However, a number of business groups feel there is more that can be done to better the region, ensuring East London’s growth momentum continues.
Will the momentum have ground to continue?
The region, which consists of 20 local authorities across the East London and Thames Estuary, saw a surge of 8.6 per cent in population growth between the years 2013 and 2022.
This is higher than the average 5.9 per cent across the whole of England.
More than a third of this growth was an influx of people aged 25-49, with the trend projected to continue to a 4.8 per cent increase in population over the next decade.
If projections stay true, some 9.6 per cent of England’s 2.17m new residents will settle in the region. Some 55,000 of whom will be aged 20-29.
With it being home to “some of the highest rents in the country” and a “mixed picture” for educational skills attainment, the growth report suggests more work on policies and infrastructure is needed.
This includes policymaker attention to housing, digital connectivity, and public services such as education and transport.
Currently, 13 of the 20 local authorities depend on public transport more than the national average.
Housing affordability is also 1.35 times higher than England’s national average.
“East London is home to some of the UK’s most ambitious and most successful entrepreneurs,” John Dickie, chief executive of BusinessLDN, said.
“To unlock their full potential they need the infrastructure that supports growth — in particular, better transport connectivity and more affordable homes.”