East London has been named the leading region in England for starting new businesses, with Newham ranking as the top local authority for small and medium-sized enterprise (SME) growth, according to a new report released today.
The study, conducted by WPI Strategy on behalf of the East London Growth Group, highlights the region’s exceptional entrepreneurial performance over the past decade. Key contributors to the group include BusinessLDN, London City Airport, and ExCeL London.
Since 2010, East London and the Thames Estuary have experienced a 62% increase in new SMEs, equating to almost 61,000 additional businesses. This surge spans diverse industries such as life sciences, fintech, logistics, and construction.
Newham Tops the Rankings
Newham saw a 175% rise in SME establishments between 2010 and 2023, with the number of businesses increasing from 4,840 to 13,290. Other East London boroughs also performed strongly, with Barking & Dagenham and Redbridge ranking third and fifth nationally, respectively. Notably, four of the top 10 local authorities for SME growth are in East London.
Seven of the 10 fastest-growing SME regions are located in London, with Salford, Manchester, and Luton being the only non-London areas to feature.
The report attributes this success to East London’s growing population, which expanded by over 325,000 between 2013 and 2022, with a significant proportion aged 25-49. Population growth in the area is projected to continue, rising by 4.8% over the next decade.
Economic Contributions and Growth Plans
Despite representing just 6.7% of England’s businesses and 6.0% of its workforce, East London generates 7.6% of the nation’s total business turnover.
The findings arrive as the UK Government outlines its new growth mission and City Hall develops its London Growth Plan. The report emphasises the need for improved transport connectivity and affordable housing to support aspiring entrepreneurs.
Local Leaders Celebrate Entrepreneurial Spirit
Deputy Mayor of London for Business and Growth, Howard Dawber, praised East London’s entrepreneurial energy:
“East London is home to some of the most exciting and dynamic businesses in the country. This report highlights the area’s potential as we continue to build a fairer and more prosperous London for everyone.”
Other key figures echoed his sentiments. Alison FitzGerald, CEO of London City Airport, said:
“This insightful report shows East London as one of the best places in the UK to start and grow a business. Now, we must focus on unlocking more opportunities for the region.”
Sir Stephen Timms, MP for East Ham, highlighted Newham’s success:
“Newham’s entrepreneurial spirit reflects the determination and creativity of its residents. This finding gives great optimism for the future.”
John Dickie, CEO of BusinessLDN, stressed the importance of infrastructure:
“To realise East London’s full potential, we must invest in better transport and more affordable homes.”
The report provides a roadmap for capitalizing on East London’s momentum, reinforcing the area’s status as a thriving hub for innovation and business growth.
