Boosting London Business – connectivity as the new currency of productivity in the capital.
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London SME's missing out due to slow broadband.
London SME's missing out on an estimated £28 billion in annual revenue due to slow and unreliable workplace broadband.
Despite the widespread availability of gigabit connectivity across the capital, London’s small and medium-sized businesses are still grappling with slow and unreliable broadband. High costs and complex processes involved in securing reliable services are prohibitive for many SMEs. This creates a significant barrier to accessing fast and dependable connectivity, leaving many businesses at a disadvantage in terms of productivity, innovation and competitiveness.
According to the Office for National Statistics (ONS), in 2023 London SMEs generated £683 billion in annual turnover, significantly boosting the city's economy and reinforcing its status as a global economic hub.
New analysis from G.Network, London’s full fibre provider, shows that SMEs are missing out on an estimated £28 billion in annual revenue due to slow and unreliable workplace broadband. Working alongside Censuswide and Development Economics, senior leaders and business owners at the capital’s SMEs were surveyed, with polling used in conjunction with ONS data to establish the overall economic impact on revenue.
According to the polling, these broadband issues have also negatively affected productivity for a quarter of all employees at the capital’s small and medium-sized businesses over the last three months. The estimated annual lost output due to these broadband issues is estimated at £5.34 billion Gross Value Added (GVA)*.
The study showed that more than half of senior leaders and business owners of London SMEs (52%) have considered moving office location in order to get better access to faster and more reliable workplace internet, with four in 10 stating they can’t serve clients in the way they’d like due to problems with slow or unreliable office internet.
The findings laid bare the impact that connectivity issues are currently having on London SMEs, with a quarter admitting that problems with slow or unreliable broadband have caused them to lose business. Just under half (47%) of SME business owners and senior leaders identified employee connectivity in the workplace as an area undermined by poor connectivity, whilst over 40% said that their ability to serve customers suffered.
SME’s identified quicker response times to clients and customers as two of the key benefits they could reap from improved office broadband connectivity. Looking ahead, the productivity gap experienced by SMEs is only likely to increase, with poor connectivity compromising their ability to leverage emerging technologies and remain competitive in an increasingly digital economy.
Kevin Murphy, CEO of G.Network, commented:
“Digital connectivity is at the heart of London’s economy, but despite extensive availability the SMEs we spoke to for the research are still suffering because connections are too costly and complicated. As an SME ourselves, we understand the challenges they’re facing, and we’re determined to put an end to slow internet speeds. Whether we are serving a hairdresser or a hedge fund, our mission is to provide businesses of all sizes with the reliable gigabit connectivity essential for their success.”
John Dickie, CEO of BusinessLDN, added:
“London’s SMEs play a key role in powering growth and productivity in the capital. This important research from G.Network not only underlines the connectivity challenges that businesses in the capital are facing, but also shines a light on the fantastic growth opportunity that lies ahead, for London and the wider UK, should access to fast and reliable broadband be improved for the city’s SMEs.”
About the research
The research comprises a survey of 250 senior executives or owners of SMEs (defined as businesses consisting of 250 employees or fewer) located in London, undertaken by Censuswide in April-May 2024.
The results were then analysed by Development Economics who used business datasets published by the Office for National Statistics to extrapolate the data and establish the findings included. Business data sets used included ‘Business Population Estimates 2023’, which provides estimates of business revenues and employment disaggregated by size-band for businesses located in all the UK regions, including London and the Annual Business Survey, which provides data on Gross Value Added and various types of business costs by sector and by UK region.
Enquiries
Teneo: Claudia Warren, Ellie Farrell
*Gross Value Added (GVA) is a key economic metric that measures the value of goods and services produced in an area, industry, or sector of an economy