Richmond upon Thames and Bexley have both been ranked in the top five “survival” boroughs for start-up businesses, according to new data.
The riverside boroughs join the City, Sutton and Hackney on the top five list, with a 71.9 per cent survival rate. The City of London came top with only ten per cent of start-ups failing and a huge 76.4 per cent surviving.
But Jeremy Corbyn’s borough of Islington didn’t fare as well. It topped a list of the top 5 London “failure” boroughs with a measly 43.4 per cent survival rate and a 29.1 per cent failure record. Enfield, Paddington, Westminster and Tower Hamlets also ranked in the bottom five.
A brand new interactive heatmap, created by cloud-based VoIP providers Vonage, has collected data from a wide range of authoritative sources, including the Office for National Statistics, the UK Land Registry, CompanyCheck.co.uk and OfCom to pinpoint the best and worst London postcodes for startup survival from 2014 to January 2016. The map features data on key factors in startup success including broadband speed, the availability of talent and house prices.
Alongside Greenwich, the City of London is home to the capital’s fastest broadband with an average 35 Mbps. By contrast, Islington has the 21st slowest broadband amongst the city’s 33 boroughs, with speeds of 24.7 Mbps, only a little faster than London’s slowest area, Haringey, with speeds of 21.5 Mbps.
In terms of talent pool, however, both the City of London and Islington are comparable, ranking just one place apart in 7th and 9th position respectively. In the City, the average property price is extremely high, hitting an eye-watering £948,936 – the third most costly area in London. Islington ranks just two places down the list, with an average price of £711,077.
With significant amounts of capital required to start up in the City, an existing reputation and accessible finance are often essential for any new business hoping to open its doors in the area. In Islington, by contrast (home to Old Street’s Silicon Roundabout which lies on the borough’s border with Hackney), an entrepreneurial, “bootstrapping” spirit pervades, potentially lending itself to riskier ventures with a higher chance of failure.
Whatever the deciding factors, understanding which of the city’s areas is the best fit for startups could prove essential to new businesses’ survival or failure. Check out Vonage’s new interactive map to identify London’s startup “sweet spots”, whether you’re focussed on technology, track records or talent.
