London emerges as the home of economic growth as four in five small businesses work on plans to secure growth this Autumn

Jobs boost for the Capital as 23% of small businesses set to hire new staff

Despite the Government’s focus on greater devolution and setting up ‘Number 10 North,’ London continues to be the engine-room of small business growth, according to research from Novuna Business Finance.

The new research, conducted among a nationally representative sample of 1,000 small business owners reveals that four in five London-based small businesses (80%) are working hard on plans to secure future growth. This figure towers above the national average of 66% – and 64% of small businesses in the North West and 61% in the North East.

Percentage of small businesses working on initiatives to back future growth

Of those small businesses in London working on initiatives to secure growth for the future,  the top initiatives backed included: keeping fixed costs down (50%), improving cash flow (34%), and being stricter on managing late payments (27%). Other growth projects that London-based small business owners are prioritising include: expanding into new overseas markets (22%), investing in new equipment (15%) and reassessing their funding arrangements (11%). In terms of investing in jobs, 23% of London small businesses are also looking to hire more staff in the coming months.

Jo Morris, Head of Insight at Novuna Business Finance commented: “After a very challenging summer period for small businesses, this research may offer hope of improving business confidence in London heading into the autumn months. The data conveys a real sense of resilience across the SME community. Even at a time when trading conditions have  been challenging, many business owners are taking steps to strengthen their business’s for the future.

“Many small businesses are focusing on measures to manage late payments and to protect cashflow, whilst others are investing in new machinery and looking at efficiency gains that can help improve profitability. At Novuna Business Finance, we continue  to support established businesses by financing essential assets, enabling them to preserve cash flow and ease pressure on other areas of their budget. Taking a flexible approach gives small businesses greater scope to plan ahead and invest in opportunities that power future growth.”