Credit crunched? Support for business start-ups in London

New businesses in the capital must have more support from the Mayor of London if their failure rate – the worst in the UK - is to be improved, our report argues. While the Mayor has made £3 million available to support existing businesses through his Economic Recovery Investment Fund, he has made substantial cuts to some programmes aimed at providing support for business start-ups.

An independent survey of business start-ups commissioned by the Committee found that 85 per cent of new businesses in London sought government-funded support – highlighting the demand for advice services. The survey also found that over a third of failed businesses were unsuccessful due to difficulties obtaining finance.

The report is attached below, along with letters received from the Mayor and the London Development Agency in response to our report. The written submissions and results of a survey of new London businesses are also available to view below: