Some businesses declared spending up to 90 per cent of turnover on rents, salaries and other overhead costs – as a result many microbusinesses in London are struggling to keep afloat. Contributor Susan Hal AM,, Chairman – Economy Committee.
There are 1 million microbusinesses across London, which make up 96 per cent of companies in London. They generated £277.3 billion of turnover last year and created at least 282,000 jobs in the last five years. Microbusinesses the Committee surveyed spend on average 53 per cent of their turnover on rents, salaries and other overhead costs.
The London Assembly Economy Committee report ‘What works for microbusinesses’, published today surveyed over 150 microbusinesses about their main concerns. The survey found: The top three immediate concerns of microbusinesses are attracting new customers or expanding into new markets, the cost of doing business in London and dealing with income volatility.
Microbusinesses say they are finding it hard to access business support in London. Almost two thirds of the firms that responded to the survey had not heard of the London Growth Hub, the Mayor’s flagship business support website. New businesses want face to face contact and tailored support, whilst established businesses are keen to receive online support or access workshop events.
Susan Hall AM, Chairman of the Economy Committee, said: “Microbusinesses are the cornerstone of the London economy. They create vital jobs and help shape our local communities. But they face huge challenges in terms of their survival. “As an owner of a microbusiness myself I know what it is like managing cash flow in a challenging market. We heard from microbusiness owners directly and they need access to the right advice at the right time.
“The Mayor promised to support small business and to protect business space. He needs to do more to help microbusinesses not just grow, but fundamentally to survive with the rising costs of doing business in London.”