East London is the most popular region in the country to start a business, new report finds

● Research on behalf of the East London Growth Group reveals that half of East London’s boroughs are in the top 10% in England for the growth rate of new SMEs since 2010 with Newham topping the charts as the most popular local authority to start a business

● Deputy Mayor of London welcomes East London’s “entrepreneurial spirit” as report argues for greater focus on housing affordability and transport connectivity to further support would-be entrepreneurs

East London is the most popular region in England to start a business, according to a new report published today.

The research, which was carried out by WPI Strategy for the East London Growth Group whose members include BusinessLDN, London City Airport and ExCeL London, shows that Newham is the local authority in England with the fastest rate of small and medium sized businesses being established, with Barking & Dagenham coming third in the national rankings, and Redbridge fifth. 4 out of the 10 top local authorities for starting a SME are in East London.

Headline findings reveal:

Since 2010, East London and the Thames Estuary have seen a rapid increase (62%) in the number of new small and medium sized businesses. That’s almost 61,000 more SMEs in their local economies, spanning a variety of sectors from life sciences and fintech to logistics and construction.

Between 2010 and 2023, Newham saw a huge 175% increase in the number of new SMEs being established (4,840 in 2010 rising to 13,290 in 2023)

7 of the 10 local authorities which have seen the fastest growth in SMEs are located in London, with only Salford, Manchester and Luton featuring from areas outside the Capital. 4 out of 10 of these local authorities are in East London.

The report, authored by a former Treasury economist, also assesses business performance and population growth as opportunities for further success in the region. East London has a rapidly expanding population of workers (between 2013 and 2022, over 325,000 more people lived in the area, with over a third being 25-49 year olds) – and it can expect future population growth of 4.8% over the next decade.

Overall, the region contributes 7.6% of the total national business turnover despite only 6.7% of England’s businesses and 6.0% of its employees being based there.

The report comes as the new Government has outlined its mission for growth, and City Hall is developing its London Growth Plan.

Howard Dawber, Deputy Mayor of London for Business and Growth, said: "East London is filled with potential and the Mayor and I welcome this report which showcases the area’s entrepreneurial spirit. East London is home to some of the most exciting and dynamic businesses in the country. It is great to see the local ambition for growth in this part of the capital and along the Thames Estuary as we continue developing an exciting new Growth Plan, and building a fairer and more prosperous London for everyone.”

Alison FitzGerald, CEO of London City Airport, said: “This insightful report shows that East London is one of the best places in the UK to start and grow a business. The priority now is to work as a group to identify clear solutions for how we can capitalise on this momentum and unlock more opportunities for East London.”

The Rt Hon Sir Stephen Timms, MP for East Ham, said: “I am delighted that Newham has been identified in this research as the most entrepreneurial place in the country. People who live in the borough – many with their roots in other parts of the world – respond to the challenges they face with energy, imagination and determination. This research finding provides good grounds for optimism about the future.”

John Dickie, Chief Executive of BusinessLDN, said: “East London is home to some of the UK’s most ambitious and most successful entrepreneurs. To unlock their full potential they need the infrastructure that supports growth — in particular, better transport connectivity and more affordable homes."

Jeremy Rees, ExCeL London’s CEO, said: “This report reinforces the incredible renaissance we have witnessed firsthand over the 25 years that ExCeL has been part of the East London community. The clear recommendations in the report for how we can build on this current success offer an exciting opportunity to further unleash the economic potential this area holds.”

ENDS

Notes to Editors

1) WPI Strategy is performing the Secretariat function for the East London Growth Potential group. For more information on the group, or their upcoming research, please contact Nick Faith at nick@wpi-strategy.com

20\ The group’s members include BusinessLDN, London City Airport and ExCeL London.

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