Entrepreneurial spirit strongest in Inner London according to GEM report

Figures released at the launch of the 2008 Global Entrepreneurship Monitor (GEM) UK survey today at Aston Business School, Birmingham, reveal that Inner London is an entrepreneurial hotspot with an average rate of 9.4% over the period 2002 to 2008, compared with around 5.7% for the UK as a whole.

The report, which draws on seven years of survey data on 160,000 respondents, provides a unique picture of business start-up activity across the UK. Professor Mark Hart of Aston Business School, co-author of the report, said “London is a world city, more comparable in entrepreneurship terms to other world cities than other regions of the UK. 

“People living in the UK’s capital city are twice as likely as people in other regions to indicate that they expected to set up a new business within the next three years. But it is in Inner London that the bulk of entrepreneurial activity takes place in the capital. Outer London has average levels of entrepreneurial activity.”

The report found that London had higher rates of business start-up, higher rates of business closure, and average rates of established business ownership, suggesting a more rapid turnover of businesses in London than in other parts of the UK.

Dr Jonathan Levie, of the Hunter Centre for Entrepreneurship at the University of Strathclyde, co-author of the report, explained: “Inner London has an unusually high transient population, with a high proportion of migrants and ethnic minorities, and these groups tend to have higher rates of entrepreneurial activity anyway. But what is intriguing is that those born and bred in London also have high levels of entrepreneurial activity. There is definitely something special about London. Its concentration of highly qualified and aspiring people and great wealth is a winning combination as far as entrepreneurship is concerned. ”

For further information on the UK GEM research project please contact Mark Hart.

Employable Graduates; Exploitable Research