Tech and Textiles Drive London Startup Surge

London office space (photo: Instant Offices)

OT recently received the results of a study conducted by Instant Offices, using data collected from Companies House. We were aware there was significant growth in London fueled by start ups, but were amazed at the numbers.

We’ve reprinted the article below for your convenience. Take special note of the sector growth chart. We hope you find this useful. Let us know.

——————-

London Business Start-Ups Grow by 21% in a Year

The number of new business start-ups in London have increased by nearly a quarter in the past year according to Instant Offices’ analysis of Companies House data from the past 2 years.

The 21% year-on-year increase in start-ups have been driven predominantly by growth in technology firms, but there has been encouraging signs from retail and creative services’ companies.

Instant analysed the Companies House data and cross-referenced it with postcode with information to create a view of the expansion of industries across the Capital. (Instant has also created heat maps for each expanding sector which shows the geographical areas for growth.)

Key growth sectors include technology services which went up 200% year on year, Wireless and telecommunications were up by 79% and computer facilities companies by 51%.

And it is not just the firms clustering around Silicon Roundabout that have seen such significant increases – the retail industry has also seen huge growth in the past 12 months.

Companies operating in the wholesale of textiles grew by 170% and clothing sales in specialised stores went up by 46%. The wholesale of clothing and footwear also went up by 76% with a 10% increase in internet or mail order retail companies.

Other sectors in London that have seen good growth are taxi operators by 117%, real estate firms by 71% and temporary employment agencies by 87%.

Tim Rodber, CEO of Instant Offices, said: “Since the start of the New Year we have seen considerable demand for office space across the UK, but space requirement has really accelerated post-election.

“The diversity of the firms behind this increase in demand is interesting – but of particular note is the role technology and creative services industries are playing in driving growth in the Capital and producing space requirements outside traditional business locations.

The Latest News
Delivered To Your Inbox

“Areas such as Southwark and the City Fringe are benefiting from high demand as start-ups weigh up the need to not only reduce costs, but attract the best staff to great work spaces.”

Key Growth Sectors

Instant has highlighted several sectors with key growth data. These are all available as heat maps to illustrate where these businesses are opening across the capital.

SECTOR % Increase / Decrease in Registrations
IT consultancy -6%
Letting & operating of own real estate 54%
Buying & selling of own real estate 124%
Mail order & Internet retail 10%
Real estate agencies 71%
Advertising agencies 24%
Clothing sales 46%
Temporary employment agencies 87%
Taxi operation 117%
Wholesale of clothing and footwear 76%
PR & communications agencies -10%
Computer facilities management 51%
Wireless telecommunications 79%
Computers & software sales 200%
Textile wholesale 170%
Research & development on biotechnology 11%