London’s small-and-medium businesses may be rejoicing after hearing of a £22 million equity fund designed to help them grow in the capital.
According to techweekeurope.co.uk, London mayor Boris Johnson revealed plans to snap up stock in local startups that are focused on creative industries such as the ‘digital economy’, along with those in leisure, education and healthcare.
The fund will bring in private sector investment using a £10 million donation from City Hall, while the influence of equity fund manager MMC Ventures will draw in more money from other private sources.
Images of the London skyline featuring buildings like The Shard and The Gherkin might give off the impression that the city is dominated by industry giants. However, freshbusinessthinking.com reports that SMEs deliver 50 per cent of its workforce, and they’ll be free to generate many more roles with the added support.
It’s been estimated that 420 jobs could be created through the scheme over the next two years, while a number of other businesses are likely to benefit from the news. This could be the case with venues for hire, as small firms without the space to host big meetings regularly book with local providers.
Announcing the news, Mr Johnson said: “London’s small to medium companies are a vital component of this city’s economy, supporting significant numbers of jobs.
“It is a top priority for me that these entrepreneurial enterprises receive practical support to thrive and grow, not least as many have the potential to become major employers in the future.”