FSB: It's harder for business people in London

Posted on 30 April 2008

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London currently holds the highest rate of business closures in the UK, the Federation of Small Businesses (FSB) has pointed out.

However, the body also confirmed that the reason why this is so is currently unknown.

Recent research from Barclays has shown that business start-ups, including firms whose owners work from home, were at their highest level for 20 years in 2007.

Last year, a record 470,000 start-ups were registered - an increase of three per cent over 2006.

However, the number of closures is nevertheless worrying for entrepreneurs - especially those in the capital.

London policy manager at the FSB, Nick Winch, commented: "There are certain things that London makes difficult for itself. Housing, transport, premises costs are all high. The cost of labour is also high compared to other parts of the country."

Referring to current economic conditions, he added: "There is a shortage of affordable commercial premises. Access to finance is not easy and the credit crunch is not going to help that."

Category: General News

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