It takes courage to start a small business, but the City of London is committed to making sure SMEs have everything they need to thrive, says Chris Hayward
Management guru, Peter Drucker, once said that: “Whenever you see a successful business, someone once made a courageous decision.”
In the City of London, courageous decisions are the lifeblood of our economy and one of the most significant contributions come from the local entrepreneurs and owner-operators of our Small and Medium sized Enterprises (SMEs).
As the political leader of the City of London Corporation, vital to the success of my flagship ‘Destination City’ policy – the growth strategy for the Square Mile – is to do all we can to improve on our economic dynamism. Entrepreneurs and SMEs play key a role in this, with the City boasting a higher concentration of SMEs than any local authority in the UK.
More than 21,600 SMEs call the City of London their home and last year has seen growth in SMEs with more in the City than at any other point in the last five years. Whilst our financial and legal service sectors remain strong, the tech sector stands out, having grown by 130 firms (five per cent) in the past year or 365 (17 per cent) since pre-pandemic 2019.
It is, therefore, critical that our SMEs have the support they need in order to thrive, whether it be access to space, finance, data, networks, or expertise. This is something we at the City Corporation are laser-focused on providing, which is why we’re launching our first ever SME strategy.
Our strategy, launched at the Guildhall last week, will make commitments to support local SMEs in five key ways. The first is through access to finance, we know the first obstacle firms face is the need for capital to help them grow. So we’ll be working closely with institutions such as the British Business Bank and Highstreet banks to help City businesses navigate what finance options are open to them. Second, access to data: supporting SMEs access to the City Corporation’s wide range of business databases, to empower them with valuable data-driven insights and helping them mitigate risks and capitalise on growth opportunities.
Thirdly, there is access to space, we’ll be supporting growing firms to locate and expand in the City through activation of empty units and meanwhile use. Fourthly, through access to expertise, we will build on existing in-house knowledge to strengthen the City’s offer and work more closely with City organisations such as the Company of Entrepreneurs, as well as offer free mentoring, in partnership with the Association of Business Mentors.
And lastly, through access to networks, we will create a vibrant business environment by supporting networking opportunities and enhancing our existing events programme.
This represents a significant step towards making the City of London an even better place to start and grow a business. It sets out how SMEs based in the Square Mile will receive unprecedented levels of support, to ensure the area remains the premier destination in the UK for starting and growing a business.
The strategy will ensure the increased visibility and accessibility of our universal support offer to small businesses, unlock the City’s unrivalled networks, and to develop a new, targeted support offer aimed at early growth companies and underrepresented groups.
We have long recognised the importance SMEs and the Corporation has spoken of its determination to support these firms. This has led to a small business support centre (SBREC) being established near Guildhall, providing a range of free business support services for the City’s SMEs. Now, we are renewing the City of London’s support for them, aligning it with the Corporation’s broader growth ambitions and the objectives of our new Corporate Plan.
In the City, total employment over the period 2016 – 2051 is projected to increase from 557,000 to 731,000, an increase of 31.2 per cent, so it is crucial that our commitment to SMEs remains unwavering. This strategy will ensure they have the support needed to thrive long into the future.
Chris Hayward is policy chairman at the City of London Corporation